Woodward Inc (WWD)
Cash ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 282,270 | 308,332 | 316,932 | 144,348 | 137,447 | 114,107 | 129,427 | 99,335 | 107,844 | 99,342 | 207,833 | 426,075 | 446,555 | 360,100 | 285,687 | 199,973 | 149,773 | 98,483 | 99,969 | 145,378 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 923,510 | 913,092 | 691,855 | 582,814 | 617,196 | 586,659 | 666,944 | 633,161 | 539,113 | 424,474 | 369,046 | 329,508 | 366,257 | 340,577 | 341,408 | 328,110 | 392,332 | 535,628 | 594,834 | 792,045 |
| Cash ratio | 0.31 | 0.34 | 0.46 | 0.25 | 0.22 | 0.19 | 0.19 | 0.16 | 0.20 | 0.23 | 0.56 | 1.29 | 1.22 | 1.06 | 0.84 | 0.61 | 0.38 | 0.18 | 0.17 | 0.18 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($282,270K
+ $—K)
÷ $923,510K
= 0.31
The cash ratio of Woodward Inc has shown fluctuations over the past few quarters. The cash ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
At the end of September 2024, Woodward Inc's cash ratio was 0.31, which signifies that the company had $0.31 in cash and cash equivalents for every dollar of current liabilities. This ratio has decreased compared to the previous quarter's ratio of 0.34.
Looking back at the trend, there have been notable variations in the cash ratio. In March 2022, the ratio was relatively high at 0.56, indicating a stronger position in terms of liquidity. However, this ratio saw a significant decline by the end of the year, dropping to 0.38 at the end of September 2022.
It is noteworthy that the cash ratio saw a sharp increase in the first quarter of 2023, reaching 0.46, before stabilizing around 0.2 in subsequent quarters. The ratio peaked in December 2021 at 1.29, which is an exceptionally high level and may suggest an excessive amount of cash on hand compared to current liabilities at that time.
Overall, the analysis of Woodward Inc's cash ratio demonstrates the company's varying liquidity positions and highlights the importance of closely monitoring cash management strategies to ensure adequate liquidity to meet short-term obligations.