Cactus Inc (WHD)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 342,843 133,792 344,527 301,669 288,659
Short-term investments US$ in thousands — — — — —
Total current liabilities US$ in thousands 178,824 175,660 116,649 92,574 48,915
Cash ratio 1.92 0.76 2.95 3.26 5.90

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($342,843K + $—K) ÷ $178,824K
= 1.92

The cash ratio of Cactus Inc has shown a decreasing trend over the years, starting at 5.90 on December 31, 2020, and declining to 3.26 on December 31, 2021, 2.95 on December 31, 2022, 0.76 on December 31, 2023, and finally increasing slightly to 1.92 on December 31, 2024.

A cash ratio above 1 indicates that the company has sufficient cash to cover its short-term liabilities. The declining trend in the cash ratio may suggest that Cactus Inc's liquidity position weakened over these years, with the ratio dropping significantly in 2023 before recovering slightly in 2024.

Overall, the decreasing cash ratio trend raises concerns about the company's ability to meet its short-term obligations with its existing cash resources. Further analysis of the company's liquidity management strategies and cash flow generation may be warranted to ensure financial stability in the future.