SPX Corp (SPXC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 99,400 | 147,800 | 388,200 | 64,000 | 50,700 |
| Short-term investments | US$ in thousands | 39,400 | 35,800 | 38,800 | 27,000 | 21,900 |
| Total current liabilities | US$ in thousands | 401,200 | 333,800 | 439,500 | 572,100 | 608,600 |
| Cash ratio | 0.35 | 0.55 | 0.97 | 0.16 | 0.12 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($99,400K
+ $39,400K)
÷ $401,200K
= 0.35
The cash ratio of SPX Corp has fluctuated over the past five years. In 2023, the cash ratio decreased to 0.35 from 0.55 in 2022, indicating a lower level of cash and cash equivalents relative to current liabilities. This could potentially signal a reduced ability to cover short-term obligations solely with available cash resources.
However, compared to the cash ratios in 2021 and 2020, which stood at 0.97 and 0.16 respectively, the 2023 ratio is still higher. The significant drop in the cash ratio in 2020 may have been a cause for concern as it implied a limited ability to meet immediate financial obligations with cash on hand.
Overall, the trend in SPX Corp's cash ratio suggests varying levels of liquidity over the years, with the current ratio of 0.35 indicating a slightly weaker liquidity position in 2023 compared to the previous year. It is essential for the company to monitor and manage its cash position effectively to ensure it can meet its short-term liabilities efficiently.
Peer comparison
Dec 31, 2023