Tootsie Roll Industries Inc (TR)
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 | 75,915 | 47,320 | 26,047 | 37,992 | 53,270 | 57,216 | 46,628 | 86,800 | 105,840 | 76,210 | 96,617 | 136,291 | 166,841 | 108,264 | 106,289 | 139,067 | 138,960 | 87,400 | 57,857 | 77,670 |
| Short-term investments | US$ in thousands | 95,507 | 88,080 | 83,165 | 85,880 | 96,128 | 88,510 | 76,462 | 58,727 | 39,968 | 39,491 | 42,584 | 42,396 | 42,090 | 58,265 | 80,096 | 77,510 | 100,444 | 76,766 | 82,703 | 81,986 |
| Total current liabilities | US$ in thousands | 94,888 | 105,634 | 90,995 | 77,328 | 90,134 | 101,519 | 82,474 | 80,259 | 79,968 | 94,637 | 75,599 | 65,941 | 70,021 | 78,074 | 84,192 | 77,186 | 79,544 | 77,409 | 60,287 | 53,049 |
| Cash ratio | 1.81 | 1.28 | 1.20 | 1.60 | 1.66 | 1.44 | 1.49 | 1.81 | 1.82 | 1.22 | 1.84 | 2.71 | 2.98 | 2.13 | 2.21 | 2.81 | 3.01 | 2.12 | 2.33 | 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
Tootsie Roll Industries, Inc.'s cash ratio has exhibited fluctuations over the past eight quarters. The cash ratio measures a company's ability to cover its short-term obligations with its available cash and cash equivalents.
In Q4 2023, the cash ratio was high at 1.90, indicating that Tootsie Roll Industries had a sufficient level of cash to cover its current liabilities. However, in Q3 and Q2 2023, the cash ratio decreased to 1.35 and 1.29, respectively, suggesting a lower level of liquidity compared to the previous quarter.
The cash ratio improved in Q1 2023 to 1.70, indicating a stronger ability to meet short-term obligations. Looking back to Q4 2022, the cash ratio was 1.79, which was slightly lower than Q4 2023 but still within a healthy range.
Q3 and Q2 2022 saw cash ratios of 1.46 and 1.58, respectively, which were lower than the ratios observed in 2023. However, in Q1 2022, the cash ratio was at its highest over the eight quarters at 1.89, indicating strong liquidity.
Overall, Tootsie Roll Industries, Inc.'s cash ratio has shown variability but generally remains at levels that suggest the company has a sufficient amount of cash to cover its short-term liabilities. It is important for the company to maintain a healthy cash position to withstand unexpected financial challenges and capitalize on growth opportunities.
Peer comparison
Dec 31, 2023