Trimble Inc (TRMB)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 229,800 | 271,000 | 325,700 | 237,700 | 189,200 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,829,300 | 1,462,100 | 1,188,600 | 1,311,300 | 1,190,300 |
| Cash ratio | 0.13 | 0.19 | 0.27 | 0.18 | 0.16 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($229,800K
+ $—K)
÷ $1,829,300K
= 0.13
The cash ratio measures a company's ability to cover its short-term liabilities using its available cash and cash equivalents. A higher cash ratio indicates stronger liquidity and financial health.
Trimble Inc's cash ratio has shown fluctuations over the past five years. In 2023, the cash ratio decreased to 0.13 from 0.19 in 2022, indicating a lower ability to cover short-term obligations with cash on hand. This decline may raise concerns about the company's liquidity position compared to the previous year.
Looking back, the cash ratio was at its highest in 2021 at 0.27, demonstrating a strong ability to meet short-term liabilities with available cash. However, in 2020 and 2019, the cash ratio was 0.18 and 0.16, respectively, suggesting slightly lower liquidity compared to the peak in 2021.
Overall, Trimble Inc's cash ratio has experienced fluctuations, with some years showing stronger liquidity positions than others. It is essential for stakeholders to monitor these ratios closely to assess the company's ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2023