Advanced Drainage Systems Inc (WMS)
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 | 490,163 | 560,744 | 470,409 | 366,104 | 217,128 | 426,690 | 457,357 | 463,696 | 20,125 | 22,173 | 14,005 | 142,833 | 195,009 | 223,996 | 203,883 | 235,210 | 174,233 | 98,312 | 54,207 | 9,357 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 439,622 | 409,125 | 427,867 | 419,587 | 378,802 | 370,280 | 439,300 | 504,758 | 391,241 | 364,084 | 413,839 | 407,450 | 318,270 | 277,559 | 282,491 | 258,901 | 238,213 | 222,085 | 241,348 | 243,983 |
| Cash ratio | 1.11 | 1.37 | 1.10 | 0.87 | 0.57 | 1.15 | 1.04 | 0.92 | 0.05 | 0.06 | 0.03 | 0.35 | 0.61 | 0.81 | 0.72 | 0.91 | 0.73 | 0.44 | 0.22 | 0.04 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($490,163K
+ $—K)
÷ $439,622K
= 1.11
The cash ratio of Advanced Drainage Systems Inc has fluctuated over the past few quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In the most recent quarter, as of March 31, 2024, the cash ratio stood at 1.11, indicating that the company had $1.11 in cash and cash equivalents for every $1 of current liabilities. This level suggests a strong ability to meet its short-term obligations with liquid assets.
Looking back at previous quarters, the cash ratio exhibited some variability. In December 2023, the ratio was at its peak at 1.37, reflecting even stronger liquidity position. However, in March 2023, the ratio dropped to 0.57, signaling a decrease in the company's ability to cover its short-term liabilities with cash on hand.
Overall, the trend in the cash ratio indicates that Advanced Drainage Systems Inc has been managing its liquidity well, with periods of higher and lower liquidity levels. It is essential for investors and stakeholders to monitor this ratio to assess the company's short-term financial health and ability to withstand unexpected cash flow requirements.