Williams Companies Inc (WMB)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 60,000 | 2,150,000 | 152,000 | 1,680,000 | 142,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 5,159,000 |
| Total current liabilities | US$ in thousands | 5,312,000 | 5,830,000 | 4,890,000 | 4,972,000 | 2,319,000 |
| Cash ratio | 0.01 | 0.37 | 0.03 | 0.34 | 2.29 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($60,000K
+ $—K)
÷ $5,312,000K
= 0.01
The cash ratio is a measure of a company's ability to cover its short-term liabilities with its cash and cash equivalents. Looking at the data provided for Williams Companies Inc, we can see a significant downward trend in the cash ratio over the years.
As of December 31, 2020, the cash ratio stood at 2.29, indicating that the company had more than enough cash on hand to cover its short-term liabilities. However, by December 31, 2024, the cash ratio had dropped to 0.01, suggesting a substantial decline in the company's ability to cover its short-term obligations with its available cash.
This downward trend in the cash ratio may signal potential liquidity concerns for Williams Companies Inc, as having a lower cash ratio implies a reduced ability to meet its short-term financial obligations without relying on external financing sources. It would be important for the company to closely monitor its liquidity position and take necessary steps to improve its cash reserves to ensure financial stability in the future.
Peer comparison
Dec 31, 2024