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.