Upbound Group Inc. (UPBD)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 93,705 | 144,141 | 108,333 | 159,449 | 70,494 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 613,804 | 445,168 | 369,899 | 388,116 | 343,050 |
| Cash ratio | 0.15 | 0.32 | 0.29 | 0.41 | 0.21 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($93,705K
+ $—K)
÷ $613,804K
= 0.15
The cash ratio of Upbound Group Inc. has fluctuated over the past five years, indicating the company's ability to cover its short-term obligations with its cash and cash equivalents. As of December 31, 2023, the cash ratio stands at 0.15, showing a decrease from the previous year's ratio of 0.32. This suggests that Upbound Group Inc. has a lower proportion of cash and cash equivalents relative to its current liabilities in 2023 compared to 2022.
The downward trend in the cash ratio may raise concerns about the company's liquidity position and its ability to meet its short-term financial obligations. A lower cash ratio could indicate a potential strain on the company's ability to pay its immediate liabilities, which may lead to difficulties in managing day-to-day operations or taking advantage of unexpected opportunities.
Management may need to closely monitor the company's cash position and consider strategies to improve liquidity, such as optimizing working capital management, exploring additional sources of financing, or implementing cost-saving measures. Investors and stakeholders should pay attention to these developments as they assess the overall financial health and risk profile of Upbound Group Inc.
Peer comparison
Dec 31, 2023