TKO Group Holdings, Inc. (TKO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 525,556 | 235,839 | 180,574 | 874,688 | 462,102 |
| Short-term investments | US$ in thousands | — | — | 258,487 | 280,957 | 131,295 |
| Total current liabilities | US$ in thousands | 670,657 | 472,140 | 230,179 | 187,320 | 497,474 |
| Cash ratio | 0.78 | 0.50 | 1.91 | 6.17 | 1.19 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($525,556K
+ $—K)
÷ $670,657K
= 0.78
TKO Group Holdings, Inc.'s cash ratio has fluctuated over the years, reflecting its ability to cover short-term liabilities with cash and cash equivalents. The cash ratio was 1.19 as of December 31, 2020, indicating that the company had $1.19 in cash and cash equivalents for every $1 of current liabilities.
The ratio significantly improved to 6.17 by December 31, 2021, suggesting a substantial increase in liquidity and a stronger ability to meet short-term obligations. However, there was a decline in the cash ratio to 1.91 by December 31, 2022, albeit still indicating a healthy liquidity position.
By December 31, 2023, the cash ratio dropped to 0.50, signaling a decrease in the company's ability to cover short-term liabilities with available cash. This may indicate potential liquidity challenges or a need to assess the management of cash resources.
As of December 31, 2024, the cash ratio slightly improved to 0.78, but it remains below the benchmark ratio of 1. This suggests that TKO Group Holdings, Inc. may need to monitor its liquidity position closely and ensure that it maintains adequate cash reserves to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024