Westinghouse Air Brake Technologies Corp (WAB)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 706,000 | 615,000 | 534,000 | 473,000 | 599,000 |
| Short-term investments | US$ in thousands | — | 154,000 | — | — | — |
| Total current liabilities | US$ in thousands | 3,792,000 | 4,056,000 | 3,467,000 | 2,910,000 | 3,226,000 |
| Cash ratio | 0.19 | 0.19 | 0.15 | 0.16 | 0.19 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($706,000K
+ $—K)
÷ $3,792,000K
= 0.19
The cash ratio of Westinghouse Air Brake Technologies Corp has shown a slight decrease from 0.19 as of December 31, 2020, to 0.16 as of December 31, 2021, and further declined to 0.15 as of December 31, 2022. However, there was a slight improvement as the ratio increased to 0.19 as of both December 31, 2023, and December 31, 2024.
The cash ratio represents the ability of a company to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash on hand relative to its current obligations.
Westinghouse Air Brake Technologies Corp's cash ratio fluctuated over the years, with a notable improvement in the most recent periods, which suggests a better ability to meet its short-term obligations using its available cash resources. It would be important to monitor this ratio closely in the future to ensure continued financial stability and liquidity for the company.
Peer comparison
Dec 31, 2024