Stanley Black & Decker Inc (SWK)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 449,400 | 395,600 | 142,100 | 1,241,900 | 297,700 |
| Short-term investments | US$ in thousands | — | — | 1,200 | 139,100 | — |
| Total current liabilities | US$ in thousands | 5,883,200 | 6,569,200 | 8,767,400 | 4,558,300 | 4,405,700 |
| Cash ratio | 0.08 | 0.06 | 0.02 | 0.30 | 0.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($449,400K
+ $—K)
÷ $5,883,200K
= 0.08
The cash ratio of Stanley Black & Decker Inc has fluctuated over the past five years, indicating varying levels of liquidity. In 2023, the cash ratio stood at 0.08, showing an improvement compared to the previous year's ratio of 0.06. This suggests that the company has a relatively higher proportion of cash to its current liabilities in 2023, which could imply a strengthened ability to cover short-term obligations with cash on hand.
However, when compared to 2021 and 2019, the cash ratio in 2023 is still lower. In 2021, the cash ratio was 0.02, indicating a significant improvement from that year to 2023. This could suggest that the company has taken steps to increase its cash position relative to its current liabilities.
The year 2020 stands out with a considerably high cash ratio of 0.30, indicating a strong liquidity position where the company had a substantial amount of cash compared to its current liabilities.
Overall, while there have been fluctuations in the cash ratio of Stanley Black & Decker Inc in recent years, it is important to consider the trend over time and assess the company's ability to manage its short-term liquidity effectively.
Peer comparison
Dec 31, 2023