US Foods Holding Corp (USFD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 59,000 | 269,000 | 211,000 | 148,000 | 828,000 |
| Short-term investments | US$ in thousands | — | 1,000 | — | — | — |
| Total current liabilities | US$ in thousands | 3,296,000 | 3,112,000 | 2,796,000 | 2,550,000 | 1,982,000 |
| Cash ratio | 0.02 | 0.09 | 0.08 | 0.06 | 0.42 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($59,000K
+ $—K)
÷ $3,296,000K
= 0.02
US Foods Holding Corp's cash ratio has shown a declining trend over the years based on the data provided. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, decreased from 0.42 on December 31, 2020, to 0.06 on December 31, 2021. This significant decrease suggests a reduction in the company's liquidity position during that period.
However, there was a slight improvement in the cash ratio in the subsequent years, reaching 0.08 on December 31, 2022, 0.09 on December 31, 2023, and then dropping to 0.02 on December 31, 2024. Despite the minor improvement in 2022 and 2023, the ratio's decrease in 2024 indicates a potential strain on the company's ability to meet its short-term obligations with its available cash.
Overall, the decreasing trend in US Foods Holding Corp's cash ratio implies a weakening liquidity position over the years, which may raise concerns about the company's short-term financial health and ability to cover immediate payment obligations solely based on its cash reserves. Management should closely monitor this ratio and take appropriate measures to maintain or improve liquidity levels to ensure the company's financial stability.
Peer comparison
Dec 31, 2024