Simpson Manufacturing Company Inc (SSD)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 239,371 | 339,427 | 354,851 | 369,122 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 300,742 | — | — | — | 301,155 | — | — | — | 2,466 | 2,475 | — | — |
| Total current liabilities | US$ in thousands | 366,348 | 377,951 | 360,325 | 352,441 | 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 |
| Cash ratio | 0.65 | 0.90 | 0.98 | 1.05 | 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 |
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 of Simpson Manufacturing Company Inc has shown varying trends over the period from March 31, 2020, to December 31, 2024. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
The company's cash ratio started at a relatively healthy level of 1.85 on March 31, 2020, indicating that it had sufficient cash to cover its short-term obligations. However, the ratio decreased over the next few quarters, reaching a low of 0.68 on June 30, 2022. This decrease may suggest that the company was using its cash for investments or other purposes rather than keeping it readily available.
Subsequently, the cash ratio increased significantly, reaching a high of 3.21 on March 31, 2022, and 2.46 on December 31, 2021. These high ratios indicate that the company had significantly improved its ability to cover its short-term liabilities with its cash reserves.
However, the cash ratio experienced fluctuations in the following periods, showing values below 1 in some quarters, such as 0.65 on December 31, 2024. A cash ratio below 1 indicates that the company may have more short-term liabilities than cash on hand, which could potentially signal liquidity concerns.
Overall, the analysis of Simpson Manufacturing Company Inc's cash ratio highlights fluctuations in its ability to cover short-term obligations with cash over the analyzed period. It would be important for the company to closely monitor its cash position and ensure it maintains a healthy level of liquidity to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024