Waters Corporation (WAT)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	335,715	404,649	587,998	684,970
Short-term investments	US$ in thousands	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	1,429	351	87,775	482,293
Total current liabilities	US$ in thousands	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	591,334	597,153	611,696	603,279
Cash ratio		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	0.57	0.68	1.10	1.93

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 eight quarters, ranging from 0.56 to 0.87. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents.

In Q1 2022, the cash ratio was relatively high at 0.87, indicating that Waters Corp. had a strong ability to cover its short-term obligations with its available cash. However, the ratio decreased in subsequent quarters, reaching a low of 0.56 in Q2 2023. This suggests a potential decrease in the company's liquidity position during this period.

Overall, the downward trend in the cash ratio over the eight quarters indicates a potential concern regarding Waters Corp.'s ability to meet its short-term liabilities solely through its cash reserves. It is important for the company to monitor its liquidity position and take necessary steps to maintain a healthy cash ratio to support its financial stability and operational needs.