Williams Companies Inc (WMB)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 60,000 | 762,000 | 55,000 | 667,000 | 2,150,000 | 2,074,000 | 551,000 | 477,000 | 152,000 | 859,000 | 133,000 | 604,000 | 1,680,000 | 214,000 | 1,201,000 | 1,126,000 | 142,000 | 70,000 | 1,133,000 | 400,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | -5,045,000 | — | — | — | — | — | 5,085,000 | 5,124,000 | 5,129,000 | 5,159,000 | 5,176,000 | — | — |
| Total current liabilities | US$ in thousands | 5,312,000 | 4,719,000 | 4,696,000 | 4,981,000 | 5,830,000 | 5,526,000 | 5,384,000 | 4,020,000 | 4,890,000 | 5,017,000 | 5,838,000 | 4,308,000 | 4,972,000 | 4,940,000 | 3,759,000 | 3,535,000 | 2,319,000 | 1,861,000 | 2,438,000 | 2,116,000 |
| Cash ratio | 0.01 | 0.16 | 0.01 | 0.13 | 0.37 | 0.38 | 0.10 | -1.14 | 0.03 | 0.17 | 0.02 | 0.14 | 0.34 | 1.07 | 1.68 | 1.77 | 2.29 | 2.82 | 0.46 | 0.19 |
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 of Williams Companies Inc has fluctuated over the past few years based on the provided data. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, reached its highest point at 2.82 on September 30, 2020, indicating a strong position in terms of liquidity at that time.
However, the cash ratio experienced a decline in subsequent periods, dropping to 0.14 on March 31, 2022, and further down to -1.14 on March 31, 2023, which suggests potential liquidity challenges or mismanagement of cash during those periods.
Subsequently, the cash ratio improved and stabilized around the range of 0.10 to 0.38 from June 30, 2023 to September 30, 2024. This indicates that the company was able to enhance its liquidity position and efficiently manage its cash resources during this period.
It is essential for Williams Companies Inc to maintain a healthy cash ratio to ensure its ability to meet short-term obligations and unexpected cash needs. Management should closely monitor and manage its cash position to support ongoing operational needs and strategic growth initiatives.
Peer comparison
Dec 31, 2024