United Parcel Service Inc (UPS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,112,000 | 3,206,000 | 5,602,000 | 10,255,000 | 5,910,000 |
| Short-term investments | US$ in thousands | 206,000 | 2,866,000 | 1,993,000 | 338,000 | 406,000 |
| Total current liabilities | US$ in thousands | 16,441,000 | 17,676,000 | 18,140,000 | 17,569,000 | 17,016,000 |
| Cash ratio | 0.38 | 0.34 | 0.42 | 0.60 | 0.37 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,112,000K
+ $206,000K)
÷ $16,441,000K
= 0.38
The cash ratio of United Parcel Service Inc has shown fluctuation over the past five years. As of December 31, 2020, the cash ratio stood at 0.37, indicating that for every dollar of current liabilities, the company had $0.37 in cash and cash equivalents. The ratio improved to 0.60 by December 31, 2021, suggesting a significant increase in the company's liquidity position.
However, by December 31, 2022, the cash ratio declined to 0.42, reflecting a decrease in the proportion of cash to current liabilities. This was followed by a further decrease to 0.34 by December 31, 2023, indicating potential liquidity challenges for the company during that period.
By December 31, 2024, the cash ratio slightly improved to 0.38, though it remained below the level observed in 2021. Overall, the fluctuation in the cash ratio of United Parcel Service Inc suggests varying levels of liquidity and the need for careful management of cash resources to meet short-term obligations effectively.