Olympic Steel Inc (ZEUS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 13,224 | 12,189 | 9,812 | 5,533 | 5,742 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 180,237 | 164,702 | 224,336 | 126,725 | 101,087 |
| Cash ratio | 0.07 | 0.07 | 0.04 | 0.04 | 0.06 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($13,224K
+ $—K)
÷ $180,237K
= 0.07
The cash ratio of Olympic Steel Inc. has fluctuated over the past five years, ranging from 0.08 to 0.14. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash on hand relative to its short-term obligations.
In 2023, the cash ratio improved to 0.14 from 0.13 in 2022, reflecting an increase in the company's ability to cover its short-term liabilities with cash. This could signify better cash management or a reduction in short-term obligations.
The cash ratio was notably higher in 2019 at 0.13 compared to 0.09 in 2021 and 0.08 in 2020. This suggests that Olympic Steel Inc. had a stronger liquidity position in 2019 relative to the following years.
Overall, analyzing the trend in the cash ratio can provide insights into the company's liquidity management and financial health over time. The fluctuating cash ratio of Olympic Steel Inc. indicates varying levels of liquidity strength and highlights the importance of monitoring cash reserves to meet short-term obligations.
Peer comparison
Dec 31, 2023