Timken Company (TKR)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 418,900 | 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 | 209,500 | 181,400 | 166,800 | 239,500 |
| Short-term investments | US$ in thousands | 31,600 | 41,800 | 38,200 | 38,600 | 39,200 | 24,700 | 30,600 | — | — | — | — | — | — | — | — | — | 25,800 | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 736,600 | 704,600 | 696,300 | 683,600 |
| Cash ratio | 0.31 | 0.27 | 0.37 | 0.39 | 0.37 | 0.27 | 0.36 | 0.49 | 0.29 | 0.31 | 0.36 | 0.33 | 0.38 | 0.42 | 0.63 | 0.50 | 0.32 | 0.26 | 0.24 | 0.35 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($418,900K
+ $31,600K)
÷ $1,471,300K
= 0.31
The cash ratio of Timken Co. has shown fluctuations over the past eight quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. In Q1 2022, the cash ratio stood at 0.70, indicating the company had a strong ability to cover its short-term obligations with cash on hand. However, the ratio decreased over the next few quarters, reaching a low of 0.37 in Q3 2023.
The decrease in the cash ratio could suggest that Timken Co. may be experiencing challenges in managing its cash position or facing increased short-term liabilities. It is important for investors and stakeholders to monitor this ratio closely, as a declining trend could signal potential liquidity issues for the company. Management may need to implement strategies to improve cash flow and maintain a healthy cash ratio in order to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023