Upbound Group Inc. (UPBD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 60,860 | 93,705 | 144,141 | 108,333 | 159,449 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 388,462 | 607,430 | 445,168 | 369,899 | 388,116 |
| Cash ratio | 0.16 | 0.15 | 0.32 | 0.29 | 0.41 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($60,860K
+ $—K)
÷ $388,462K
= 0.16
The cash ratio of Upbound Group Inc. has shown a fluctuating trend over the past five years. It stood at 0.41 on December 31, 2020, indicating that the company had $0.41 in cash for every $1 of its current liabilities. However, this ratio decreased to 0.29 by December 31, 2021, suggesting a reduction in the company's ability to cover its short-term obligations with cash alone.
Subsequently, the cash ratio increased to 0.32 by December 31, 2022, showing a slight improvement in the company's liquidity position. However, this positive trend was short-lived as the ratio dropped significantly to 0.15 by December 31, 2023, signaling potential liquidity concerns for Upbound Group Inc.
By the end of December 31, 2024, the cash ratio slightly recovered to 0.16, although it still remained relatively low compared to previous years. This indicates that the company may need to carefully manage its cash flow and liquidity to ensure it can meet its short-term financial obligations in the future.
Peer comparison
Dec 31, 2024