Westinghouse Air Brake Technologies Corp (WAB)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 615,000 | 534,000 | 473,000 | 599,000 | 604,200 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,056,000 | 3,467,000 | 2,910,000 | 3,226,000 | 3,258,000 |
| Cash ratio | 0.15 | 0.15 | 0.16 | 0.19 | 0.19 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($615,000K
+ $—K)
÷ $4,056,000K
= 0.15
The cash ratio of Westinghouse Air Brake Technologies Corp has remained relatively stable over the past five years, fluctuating between 0.22 and 0.26. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash to meet its short-term obligations.
In this case, Westinghouse Air Brake Technologies Corp's cash ratio has hovered around 0.22 to 0.26, suggesting that the company has maintained a consistent level of liquidity over the years. A cash ratio of 0.22 to 0.26 implies that for every dollar of current liabilities, the company has 0.22 to 0.26 dollars of cash and cash equivalents on hand.
While a cash ratio above 1.0 is generally considered favorable, indicating that the company has more cash than short-term liabilities, it's important to note that different industries may have varying ideal cash ratio benchmarks. Therefore, it would be beneficial to compare Westinghouse Air Brake Technologies Corp's cash ratio with industry peers to assess its liquidity position relative to competitors.
Peer comparison
Dec 31, 2023