Simpson Manufacturing Company Inc (SSD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 239,371 | 429,822 | 300,742 | 301,155 | 274,639 |
| Short-term investments | US$ in thousands | — | — | 300,742 | 301,155 | 2,466 |
| Total current liabilities | US$ in thousands | 366,348 | 361,257 | 348,563 | 244,602 | 194,061 |
| Cash ratio | 0.65 | 1.19 | 1.73 | 2.46 | 1.43 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($239,371K
+ $—K)
÷ $366,348K
= 0.65
The cash ratio for Simpson Manufacturing Company Inc has shown fluctuations over the past five years.
- As of December 31, 2020, the cash ratio was 1.43, indicating that the company had $1.43 of cash and cash equivalents for every dollar of current liabilities.
- By December 31, 2021, the cash ratio improved significantly to 2.46, suggesting a stronger liquidity position with $2.46 of cash for every dollar of current liabilities.
- However, by December 31, 2022, the cash ratio declined to 1.73, showing a reduction in the company's ability to cover its short-term obligations with cash reserves.
- The trend continued in the following years, with the cash ratio dropping to 1.19 by December 31, 2023, and further decreasing to 0.65 by December 31, 2024, indicating a deteriorating liquidity position.
Overall, the fluctuation in the cash ratio of Simpson Manufacturing Company Inc reflects varying levels of liquidity and highlights the importance of closely monitoring the company's ability to cover its short-term obligations with available cash resources.
Peer comparison
Dec 31, 2024