Sterling Construction Company Inc (STRL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 664,195 | 471,563 | 181,544 | 60,945 | 66,185 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 741,958 | 678,168 | 446,611 | 351,760 | 321,884 |
| Cash ratio | 0.90 | 0.70 | 0.41 | 0.17 | 0.21 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($664,195K
+ $—K)
÷ $741,958K
= 0.90
The cash ratio of Sterling Construction Company Inc demonstrates a notable upward trajectory over the five-year period from December 31, 2020, to December 31, 2024. Specifically, the ratio increased from 0.21 in 2020 to 0.17 in 2021, indicating a slight decline during that initial period. Subsequently, the ratio experienced a significant improvement, rising to 0.41 in 2022, nearly doubling the previous year's level. This upward momentum continued, with the cash ratio reaching 0.70 in 2023 and further expanding to 0.90 in 2024.
This trend suggests an increasingly conservative liquidity position, with the company holding a larger proportion of its current assets in the form of cash relative to its current liabilities over time. The consistent increase indicates enhanced liquidity management and a potential strengthening of the company’s ability to meet short-term obligations solely with cash resources. Overall, the progressive improvement in the cash ratio signifies a positive development in Sterling Construction's liquidity profile over the observed period.
Peer comparison
Dec 31, 2024