Waters Corporation (WAT)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	395,076	480,529	501,234	436,695	335,715
Short-term investments	US$ in thousands	898	862	68,051	6,451	1,429
Total current liabilities	US$ in thousands	789,580	785,737	680,508	804,983	591,334
Cash ratio		0.50	0.61	0.84	0.55	0.57

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($395,076K + $898K) ÷ $789,580K
= 0.50

The cash ratio of Waters Corp. has fluctuated over the past five years, ranging from 0.65 to 0.97. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a better ability to meet short-term obligations without relying on external sources.

In 2021, Waters Corp. had a relatively high cash ratio of 0.97, indicating a strong liquidity position. This suggests that the company had sufficient cash on hand to cover its short-term liabilities. However, in 2020, the cash ratio decreased to 0.65, reflecting a potential weakening of liquidity compared to the previous year.

Overall, Waters Corp. has maintained a reasonable cash ratio above 0.65 in the past five years, implying a generally healthy liquidity position. It is important for investors and stakeholders to monitor changes in the cash ratio over time to assess the company's ability to meet its short-term financial obligations.