Veralto Corporation (VLTO)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,101,000 | 1,267,000 | 1,043,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 1,245,000 | 1,226,000 | 1,190,000 |
| Cash ratio | 0.88 | 1.03 | 0.88 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,101,000K
+ $—K)
÷ $1,245,000K
= 0.88
The cash ratio of Veralto Corporation is an important liquidity metric that measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
Looking at the data provided, the cash ratio for Veralto Corporation on June 30, 2024, was 0.88, indicating that the company had $0.88 of cash and cash equivalents for every $1 of current liabilities. This suggests that the company may have had some difficulty meeting its short-term obligations solely with cash on hand.
On September 30, 2024, the cash ratio improved to 1.03, which is a positive sign. It indicates that Veralto Corporation had slightly more cash and cash equivalents to cover its current liabilities, potentially reflecting better liquidity management during that period.
However, by December 31, 2024, the cash ratio decreased back to 0.88, the same level as seen on June 30, 2024. This suggests that Veralto Corporation may have returned to a position where its cash and cash equivalents are not sufficient to comfortably cover its short-term obligations.
Overall, the fluctuation in Veralto Corporation's cash ratio throughout the year indicates that the company's liquidity position may have been somewhat unstable. It is crucial for the company to closely monitor and manage its cash resources to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024