Cactus Inc (WHD)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 194,257 | 133,792 | 63,738 | 63,910 | 75,422 | 344,527 | 320,623 | 311,684 | 297,741 | 301,669 | 301,974 | 309,082 | 291,970 | 288,659 | 273,941 | 270,673 | 230,202 | 202,603 | 167,545 | 131,149 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 190,670 | 175,660 | 177,367 | 180,731 | 186,566 | 116,649 | 132,187 | 113,638 | 102,457 | 92,574 | 87,951 | 73,560 | 55,056 | 48,915 | 47,997 | 58,778 | 81,414 | 91,126 | 89,580 | 92,955 |
| Cash ratio | 1.02 | 0.76 | 0.36 | 0.35 | 0.40 | 2.95 | 2.43 | 2.74 | 2.91 | 3.26 | 3.43 | 4.20 | 5.30 | 5.90 | 5.71 | 4.61 | 2.83 | 2.22 | 1.87 | 1.41 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($194,257K
+ $—K)
÷ $190,670K
= 1.02
The cash ratio of Cactus Inc has exhibited fluctuations over the past few quarters. The cash ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Looking at the trend, the cash ratio declined from 5.30 in March 2021 to 0.35 in June 2023, indicating a significant decrease in the company's liquidity position during this period. However, there was a slight improvement in the cash ratio to 1.02 in March 2024.
Overall, Cactus Inc experienced a period of relatively high liquidity in late 2020 and early 2021, as evidenced by cash ratios above 4.00. However, the company's ability to cover short-term liabilities with cash declined significantly in mid-2023, although there has been a partial recovery by the first quarter of 2024.
It is important for Cactus Inc to carefully manage its cash and cash equivalents to ensure that it has sufficient liquidity to meet its short-term financial obligations, particularly during periods of economic uncertainty or operational challenges. Further monitoring and analysis of the company's cash position will be essential for assessing its financial health and ability to navigate potential liquidity risks.
Peer comparison
Mar 31, 2024