Waters Corporation (WAT)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	324,421	395,076	480,529	501,234	436,695
Short-term investments	US$ in thousands	934	898	862	68,051	6,451
Total current liabilities	US$ in thousands	789,758	789,580	785,737	680,508	804,983
Cash ratio		0.41	0.50	0.61	0.84	0.55

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($324,421K + $934K) ÷ $789,758K
= 0.41

The cash ratio of Waters Corporation, which measures the company's ability to cover its short-term obligations with its cash and cash equivalents, has shown fluctuations over the past five years.

As of December 31, 2020, Waters Corporation had a cash ratio of 0.55, indicating that it had $0.55 in cash and cash equivalents for every dollar of current liabilities.

Subsequently, the cash ratio improved to 0.84 as of December 31, 2021, suggesting that the company had strengthened its liquidity position by holding more cash relative to its short-term obligations.

However, the cash ratio slightly declined to 0.61 by December 31, 2022, before decreasing further to 0.50 by December 31, 2023. This downward trend may signal potential liquidity challenges or a shift in the company's cash management strategy.

By the end of the most recent period on December 31, 2024, Waters Corporation's cash ratio dropped to 0.41, indicating a reduced ability to cover its short-term obligations with available cash reserves.

Overall, the fluctuating trend in the cash ratio of Waters Corporation suggests varying levels of liquidity and highlights the importance of closely monitoring the company's cash management practices and ability to meet its short-term financial obligations.