Timken Company (TKR)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 373,200 | 412,700 | 471,000 | 421,900 | 419,300 | 367,900 | 344,300 | 330,500 | 331,600 | 300,900 | 305,300 | 424,500 | 257,100 | 261,800 | 305,500 | 302,300 | 320,300 | 313,100 | 415,600 | 387,500 |
| Short-term investments | US$ in thousands | — | 15,100 | 10,200 | 11,400 | 31,600 | 41,800 | 38,200 | 38,600 | 39,200 | 24,700 | 30,600 | 57,800 | 56,900 | 43,600 | 52,000 | 47,200 | 37,600 | — | — | — |
| Total current liabilities | US$ in thousands | 820,500 | 910,300 | 940,700 | 1,442,700 | 1,471,300 | 1,503,900 | 1,022,400 | 940,000 | 1,012,400 | 1,209,000 | 920,500 | 866,200 | 896,600 | 846,000 | 857,300 | 916,800 | 848,000 | 740,400 | 664,800 | 769,800 |
| Cash ratio | 0.45 | 0.47 | 0.51 | 0.30 | 0.31 | 0.27 | 0.37 | 0.39 | 0.37 | 0.27 | 0.36 | 0.56 | 0.35 | 0.36 | 0.42 | 0.38 | 0.42 | 0.42 | 0.63 | 0.50 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($373,200K
+ $—K)
÷ $820,500K
= 0.45
The cash ratio of Timken Company shows the company's ability to cover its current liabilities with its cash and cash equivalents. Over the period from March 31, 2020, to December 31, 2024, the cash ratio fluctuated between 0.27 and 0.63, indicating some variability in the company's liquidity position.
The trend in the cash ratio reveals some fluctuations, with periods of improvement and decline. For example, the ratio increased from 0.50 on March 31, 2020, to its peak of 0.63 on June 30, 2020, before declining to 0.27 on September 30, 2022.
Overall, the company's ability to cover its short-term obligations with cash and cash equivalents was relatively stable, with the ratio generally remaining above 0.30. However, a lower cash ratio could indicate potential liquidity challenges, while a higher ratio suggests a stronger ability to meet short-term obligations.
Investors and stakeholders should monitor changes in the cash ratio over time to assess Timken Company's liquidity position and its ability to withstand any financial challenges that may arise in the future.
Peer comparison
Dec 31, 2024