Tegna Inc (TGNA)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 693,214 361,036 551,681 56,989 40,968
Short-term investments US$ in thousands — — — — 136,219
Total current liabilities US$ in thousands 466,280 423,372 391,024 375,132 424,175
Cash ratio 1.49 0.85 1.41 0.15 0.42

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($693,214K + $—K) ÷ $466,280K
= 1.49

The cash ratio of Tegna Inc has shown fluctuations over the years. As of December 31, 2020, the cash ratio was 0.42, indicating that the company had $0.42 in cash or cash equivalents for every dollar of current liabilities.

By December 31, 2021, the cash ratio had decreased to 0.15, suggesting a decline in the company's liquidity position. However, this low ratio may be a cause for concern as it indicates that Tegna Inc may have some difficulty in meeting its short-term obligations with its available cash resources alone.

The cash ratio then saw a significant improvement by December 31, 2022, reaching 1.41, implying that the company had more than enough cash to cover its current liabilities. This indicates a strong liquidity position for Tegna Inc at that time.

Subsequently, the cash ratio decreased slightly to 0.85 by December 31, 2023, but still remained above 1, demonstrating continued healthy liquidity for the company.

Finally, as of December 31, 2024, the cash ratio increased to 1.49, indicating that Tegna Inc had improved its liquidity position even further, with more than enough cash to cover its short-term obligations.

Overall, Tegna Inc's cash ratio has shown a mix of fluctuations and improvements over the years, suggesting varying levels of liquidity strength. It is essential for stakeholders to monitor these changes to assess the company's ability to meet its short-term financial obligations.