Williams Companies Inc (WMB)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 2,150,000 152,000 1,680,000 142,000 289,000
Short-term investments US$ in thousands 5,159,000
Total current liabilities US$ in thousands 5,830,000 4,890,000 4,972,000 2,319,000 3,968,000
Cash ratio 0.37 0.03 0.34 2.29 0.07

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,150,000K + $—K) ÷ $5,830,000K
= 0.37

The cash ratio of Williams Cos Inc has shown fluctuating trends over the past five years. In 2023, the cash ratio improved significantly to 0.44 compared to 0.15 in 2022. This indicates that the company had a higher proportion of cash and cash equivalents to cover its current liabilities in 2023. The peak in the cash ratio in 2021 at 0.44 suggests that the company had a strong liquidity position that year as well.

However, in 2020 and 2019, the cash ratio was relatively lower at 0.13 and 0.12, respectively. This implies that Williams Cos Inc had less cash on hand relative to its current liabilities in those years.

Overall, it is important to note that while a higher cash ratio generally indicates better liquidity and ability to cover short-term obligations, fluctuations in the ratio over the years may suggest varying levels of cash management efficiency and working capital management by the company. Further analysis of the company's cash management strategies and overall financial health would provide a deeper insight into the implications of these fluctuations.


Peer comparison

Dec 31, 2023