Waters Corporation (WAT)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	324,421	330,514	326,427	337,290	395,076	336,414	329,693	486,070	480,529	443,637	418,897	480,070	501,234	524,702	460,056	683,783	436,695	374,934	339,036	390,061
Short-term investments	US$ in thousands	934	944	934	923	898	898	885	885	862	876	897	23,025	68,051	130,490	203,566	125,986	6,451	22,136	16,720	3,810
Total current liabilities	US$ in thousands	789,758	816,040	762,532	848,459	789,580	745,029	809,387	801,950	785,737	731,970	746,563	687,829	680,508	671,889	681,018	785,049	804,983	722,188	697,320	551,051
Cash ratio		0.41	0.41	0.43	0.40	0.50	0.45	0.41	0.61	0.61	0.61	0.56	0.73	0.84	0.98	0.97	1.03	0.55	0.55	0.51	0.71

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 has shown some fluctuations over the past few years. From March 31, 2020, where the cash ratio was 0.71, it decreased to 0.51 by June 30, 2020. There was a slight improvement by September 30, 2020, with a ratio of 0.55, which remained stable at 0.55 by December 31, 2020.

There was a significant increase in the cash ratio by March 31, 2021, reaching 1.03, indicating a strengthening liquidity position. This level was slightly reduced to 0.97 by June 30, 2021, and continued to hover around the 0.9 range for the next three quarters.

However, a notable decline in the cash ratio was seen towards the end of 2023 and the beginning of 2024, where the ratio fell to 0.40 by March 31, 2024. This was followed by a slight recovery to 0.43 by June 30, 2024, but it stayed relatively low at 0.41 for the subsequent two quarters.

Overall, the cash ratio of Waters Corporation has experienced fluctuations, with periods of improvement and decline. It is essential for the company to carefully manage its cash position to ensure it can meet its short-term obligations effectively.