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