United Parcel Service Inc (UPS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,206,000 | 5,602,000 | 10,255,000 | 5,910,000 | 5,238,000 |
| Short-term investments | US$ in thousands | 2,866,000 | 3,984,000 | 674,000 | 406,000 | 503,000 |
| Total current liabilities | US$ in thousands | 17,676,000 | 18,140,000 | 17,569,000 | 17,016,000 | 15,413,000 |
| Cash ratio | 0.34 | 0.53 | 0.62 | 0.37 | 0.37 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,206,000K
+ $2,866,000K)
÷ $17,676,000K
= 0.34
The cash ratio of United Parcel Service, Inc. has fluctuated over the past five years. In 2023, the cash ratio decreased to 0.46 from the previous year's 0.53. This indicates that the company has $0.46 in cash and cash equivalents available to cover each dollar of its current liabilities, reflecting a slight decrease in liquidity.
Comparing to 2022 and 2021, where the cash ratios were 0.53 and 0.71 respectively, the downward trend suggests a potential tightening of the company's liquidity position. However, the cash ratio in 2023 is still higher than the levels seen in 2020 and 2019, which were 0.49 in both years.
Overall, while the cash ratio for United Parcel Service, Inc. decreased in 2023, it is important to assess this ratio in conjunction with other liquidity and financial health metrics to gain a comprehensive understanding of the company's ability to meet its short-term obligations.