Veeco Instruments Inc (VECO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 145,595 | 158,781 | 154,925 | 119,747 | 129,625 |
| Short-term investments | US$ in thousands | 198,719 | 146,664 | 147,488 | 104,181 | 189,771 |
| Total current liabilities | US$ in thousands | 192,282 | 218,033 | 257,904 | 189,204 | 146,681 |
| Cash ratio | 1.79 | 1.40 | 1.17 | 1.18 | 2.18 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($145,595K
+ $198,719K)
÷ $192,282K
= 1.79
The cash ratio of Veeco Instruments Inc has fluctuated over the years. As of December 31, 2020, the cash ratio was 2.18, indicating that the company had $2.18 in cash and cash equivalents for every $1 of current liabilities.
However, by December 31, 2021, the cash ratio decreased to 1.18, suggesting a lower level of liquidity compared to the previous year. This may raise concerns about the company's ability to cover its short-term obligations solely with its available cash reserves.
The trend continued into December 31, 2022, with a slight decrease in the cash ratio to 1.17. This signifies a further decline in liquidity and a potential need for Veeco Instruments Inc to explore alternative sources of funding to meet its short-term financial commitments.
On a positive note, the cash ratio improved to 1.40 by December 31, 2023, indicating a healthier cash position relative to current liabilities. This uptick may reflect better cash management practices or an increase in cash reserves compared to the prior year.
By December 31, 2024, the cash ratio further increased to 1.79, signaling a strengthened liquidity position for Veeco Instruments Inc. This improvement suggests enhanced financial stability and the company's ability to cover short-term obligations more comfortably using its cash resources.
In conclusion, while the cash ratio of Veeco Instruments Inc has shown some fluctuations over the years, the recent trend indicates an overall improvement in liquidity and a better ability to meet short-term financial obligations with available cash reserves.
Peer comparison
Dec 31, 2024