Tootsie Roll Industries Inc (TR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 75,915 | 53,270 | 105,840 | 166,841 | 138,960 |
| Short-term investments | US$ in thousands | 95,507 | 96,128 | 39,968 | 42,090 | 100,444 |
| Total current liabilities | US$ in thousands | 94,888 | 90,134 | 79,968 | 70,021 | 79,544 |
| Cash ratio | 1.81 | 1.66 | 1.82 | 2.98 | 3.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($75,915K
+ $95,507K)
÷ $94,888K
= 1.81
The cash ratio of Tootsie Roll Industries, Inc. has shown some fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. In this case, a higher cash ratio indicates a stronger position in terms of liquidity.
Looking at the trend from 2019 to 2023, the cash ratio has decreased gradually from 3.09 in 2019 to 1.90 in 2023. While the cash ratio of 3.09 in 2019 indicated a very strong liquidity position, the subsequent decline suggests a decrease in the company's ability to cover its short-term liabilities solely with its available cash.
It is worth noting that even though there has been a decline in the cash ratio over the years, the current ratio of 1.90 in 2023 still indicates that Tootsie Roll Industries, Inc. has sufficient cash on hand to cover its short-term obligations. However, management may want to monitor this ratio closely to ensure that the company maintains an adequate level of liquidity for its operational needs and financial stability.
Peer comparison
Dec 31, 2023