Tootsie Roll Industries Inc (TR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 138,841 | 75,915 | 53,270 | 105,840 | 166,841 |
| Short-term investments | US$ in thousands | 55,789 | 95,507 | 96,128 | 39,968 | 42,090 |
| Total current liabilities | US$ in thousands | 87,286 | 94,888 | 90,134 | 79,968 | 70,021 |
| Cash ratio | 2.23 | 1.81 | 1.66 | 1.82 | 2.98 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($138,841K
+ $55,789K)
÷ $87,286K
= 2.23
Tootsie Roll Industries Inc's cash ratio has been fluctuating over the past five years. The ratio decreased from 2.98 on December 31, 2020, to 1.82 on December 31, 2021, indicating a decrease in its ability to cover its current liabilities with cash and cash equivalents alone. This downward trend continued in the following years, with the cash ratio reaching 1.66 on December 31, 2022, and slightly increasing to 1.81 on December 31, 2023.
However, the cash ratio improved to 2.23 on December 31, 2024, suggesting that the company's liquidity position strengthened compared to the previous year. Overall, while the cash ratio has shown some volatility, the recent increase in 2024 suggests a potential improvement in Tootsie Roll's ability to meet its short-term obligations with its available cash reserves.
Peer comparison
Dec 31, 2024