Dentsply Sirona Inc (XRAY)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 334,000 | 365,000 | 339,000 | 438,000 | 405,000 |
| Short-term investments | US$ in thousands | — | 24,000 | 22,000 | 33,000 | 40,000 |
| Total current liabilities | US$ in thousands | 1,425,000 | 1,170,000 | 1,261,000 | 1,372,000 | 995,000 |
| Cash ratio | 0.23 | 0.33 | 0.29 | 0.34 | 0.45 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($334,000K
+ $—K)
÷ $1,425,000K
= 0.23
The cash ratio of DENTSPLY Sirona Inc has been relatively stable over the past five years, ranging from 0.46 to 0.66. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio is generally preferred as it suggests a stronger ability to meet short-term obligations without relying on external sources of funding.
The decreasing trend in the cash ratio from 0.66 in 2019 to 0.46 in 2023 may raise some concerns about the company's liquidity position. However, it is important to consider the nature of the industry and the company's specific business model when evaluating the adequacy of the cash ratio. Additionally, further analysis of the components of the ratio, such as cash equivalents and current liabilities, would provide a more detailed insight into the company's liquidity management.
Peer comparison
Dec 31, 2023