Advanced Drainage Systems Inc (WMS)
Cash ratio
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 463,319 | 488,859 | 613,020 | 541,637 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 398,396 | 388,090 | 467,337 | 492,927 | 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 |
| Cash ratio | 1.16 | 1.26 | 1.31 | 1.10 | 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 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($463,319K
+ $—K)
÷ $398,396K
= 1.16
The cash ratio of Advanced Drainage Systems Inc has shown fluctuations over the past few years. The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio typically suggests a stronger liquidity position.
From June 30, 2020, to March 31, 2022, the cash ratio ranged between 0.03 and 0.92, showing some volatility. However, the ratio improved significantly from June 30, 2022, reaching a high of 1.37 on December 31, 2023, indicating a more comfortable cash position.
After peaking in December 2023, the cash ratio fluctuated slightly but remained relatively strong, staying above 1.0 in the subsequent quarters. This suggests that the company has adequate cash reserves to cover its short-term obligations effectively.
Overall, Advanced Drainage Systems Inc has shown improvement in its cash ratio over the years, indicating a more robust liquidity position. Maintaining a cash ratio above 1.0 demonstrates the company's ability to meet its short-term financial obligations without relying heavily on external financing.