Cactus Inc (WHD)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 133,792 344,527 301,669 288,659 202,603
Short-term investments US$ in thousands — — — — —
Total current liabilities US$ in thousands 175,660 116,649 92,574 48,915 91,126
Cash ratio 0.76 2.95 3.26 5.90 2.22

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($133,792K + $—K) ÷ $175,660K
= 0.76

The cash ratio of Cactus Inc has shown a declining trend over the past five years. It decreased from 5.90 in 2020 to 0.76 in 2023, indicating a substantial decrease in the company's ability to cover its short-term liabilities with its available cash. The sharp decline in the cash ratio suggests potential liquidity issues or inefficiencies in managing cash flow. Further investigation into the company's cash management practices and overall financial health may be warranted to address the declining trend in the cash ratio.