Sensata Technologies Holding NV (ST)

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	508,104	889,703	857,312	1,034,130	1,225,520	1,103,920	1,558,580	1,608,480	1,708,960	1,958,140	1,861,770	1,893,930	1,861,980	1,610,190	1,242,950	802,971	774,119	721,386	721,073	649,518
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	823,718	872,673	880,898	1,109,470	1,178,970	905,974	887,129	840,045	836,259	829,820	836,932	773,521	1,495,160	626,415	926,559	621,061	634,746	620,503	629,144	636,296
Cash ratio		0.62	1.02	0.97	0.93	1.04	1.22	1.76	1.91	2.04	2.36	2.22	2.45	1.25	2.57	1.34	1.29	1.22	1.16	1.15	1.02

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($508,104K + $—K) ÷ $823,718K
= 0.62

The cash ratio of Sensata Technologies Holding Plc has shown a declining trend over the past few quarters. In Q4 2023, the cash ratio decreased to 0.78, indicating a lower ability to cover its short-term liabilities with its cash and cash equivalents. This may signal potential liquidity concerns for the company. However, when comparing Q4 2023 to the same period in the previous year (Q4 2022), the cash ratio has decreased only slightly from 1.18 to 0.78, suggesting that the company's liquidity position has weakened over the year.

Overall, the decreasing trend in the cash ratio of Sensata Technologies Holding Plc raises some concerns about its short-term liquidity management and ability to meet its immediate financial obligations using its available cash resources. Further analysis and monitoring of the company's liquidity position would be advisable to assess the impact on its financial health and sustainability.