Simpson Manufacturing Company Inc (SSD)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 429,822 | 571,006 | 407,982 | 252,541 | 300,742 | 309,262 | 246,134 | 984,372 | 301,155 | 294,180 | 305,796 | 257,428 | 274,639 | 311,465 | 315,448 | 301,741 | 230,210 | 194,061 | 141,731 | 113,407 |
| Short-term investments | US$ in thousands | — | — | — | — | 300,742 | — | — | — | 301,155 | — | — | — | 2,466 | 2,475 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 361,257 | 427,569 | 396,948 | 330,666 | 348,563 | 346,166 | 361,396 | 306,849 | 244,602 | 245,477 | 232,454 | 224,814 | 194,061 | 191,161 | 193,414 | 162,851 | 158,907 | 165,867 | 157,241 | 150,578 |
| Cash ratio | 1.19 | 1.34 | 1.03 | 0.76 | 1.73 | 0.89 | 0.68 | 3.21 | 2.46 | 1.20 | 1.32 | 1.15 | 1.43 | 1.64 | 1.63 | 1.85 | 1.45 | 1.17 | 0.90 | 0.75 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($429,822K
+ $—K)
÷ $361,257K
= 1.19
The cash ratio of Simpson Manufacturing Co., Inc. has fluctuated over the past eight quarters, ranging from 0.80 to 3.34. A higher cash ratio indicates that the company has a greater ability to cover its short-term liabilities with its available cash and cash equivalents.
In the most recent quarter, Q4 2023, the cash ratio was 1.32, suggesting a solid liquidity position compared to the previous two quarters. This indicates that the company has sufficient cash on hand to cover its current liabilities comfortably.
Looking back over the past year, the company experienced a significant spike in its cash ratio in Q1 2022, reaching 3.34, which may indicate a temporary increase in liquidity possibly due to specific events such as asset sales or one-time cash inflows.
Overall, while the cash ratio has shown fluctuations, it is important for Simpson Manufacturing Co., Inc. to maintain a balance between cash on hand and investments in order to support its operations and meet its financial obligations effectively.
Peer comparison
Dec 31, 2023