Willscot Mobile Mini Holdings Corp A (WSC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 9,001 | 10,958 | 7,390 | 12,699 | 24,937 |
| Short-term investments | US$ in thousands | — | 9,145 | — | — | — |
| Total current liabilities | US$ in thousands | 585,008 | 562,020 | 561,942 | 517,645 | 448,667 |
| Cash ratio | 0.02 | 0.04 | 0.01 | 0.02 | 0.06 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,001K
+ $—K)
÷ $585,008K
= 0.02
The cash ratio for Willscot Mobile Mini Holdings Corp A over the period from December 31, 2020, to December 31, 2024, indicates a pattern of significant variability and generally low liquidity in terms of cash holdings relative to current liabilities.
Starting at 0.06 in 2020, the cash ratio decreased markedly to 0.02 in 2021 and further declined to 0.01 in 2022. This downward trend signifies a diminishing proportion of cash relative to current liabilities, reflecting a reduced capacity to cover short-term obligations solely with cash holdings. In 2023, there was an increase to 0.04, suggesting a temporary improved liquidity position with a higher cushion of cash relative to current liabilities. However, by 2024, the cash ratio declined again to 0.02, returning to a level observed in 2021, indicating a persistent low cash liquidity position.
Overall, the company's cash ratio remains well below 1.0 throughout the analyzed period, emphasizing that cash alone constitutes a small fraction of current liabilities. Such a low ratio suggests a reliance on other liquid assets or operational liquidity sources beyond cash, which may indicate prudent cash management strategies or potential liquidity constraints. The fluctuations could reflect strategic shifts, operational cash flows, or changes in liquidity management practices over these years. This trend warrants ongoing monitoring to assess the company's ability to meet short-term obligations solely with cash resources.