Stanley Black & Decker Inc (SWK)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 290,500 | 449,400 | 395,600 | 142,300 | 1,381,000 |
| Short-term investments | US$ in thousands | — | -600 | — | 1,200 | — |
| Total current liabilities | US$ in thousands | 2,680,100 | 5,883,200 | 6,560,100 | 8,760,500 | 4,558,300 |
| Cash ratio | 0.11 | 0.08 | 0.06 | 0.02 | 0.30 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($290,500K
+ $—K)
÷ $2,680,100K
= 0.11
The cash ratio of Stanley Black & Decker Inc has shown fluctuations over the past five years. In December 31, 2020, the company had a cash ratio of 0.30, indicating a strong liquidity position with 30% of its current liabilities covered by cash and cash equivalents. However, by the end of December 31, 2021, the cash ratio had decreased significantly to 0.02, suggesting a lower liquidity position with only 2% coverage of current liabilities by cash.
Subsequently, in December 31, 2022, the cash ratio improved to 0.06, indicating a slight increase in liquidity compared to the previous year. By December 31, 2023, the cash ratio further improved to 0.08, showing a continued strengthening of liquidity. Finally, by December 31, 2024, the cash ratio increased to 0.11, signaling a healthier liquidity position for the company with 11% coverage of current liabilities by cash and cash equivalents.
Overall, the trend of the cash ratio for Stanley Black & Decker Inc reflects variability in its liquidity position over the five-year period, with fluctuations in the coverage of current liabilities by cash and cash equivalents. These changes may indicate shifts in the company's ability to meet its short-term obligations using its available cash resources.
Peer comparison
Dec 31, 2024