Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Charter Communications Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Current Ratio Trends
- The current ratio exhibits notable fluctuations throughout the periods analyzed, starting at 0.44 in the first quarter of 2020 and declining to 0.29 by the end of 2021. There is a general recovery trend observed during 2022 and into early 2023 where the ratio stabilizes around 0.33, though it remains well below 1.0, indicating limited short-term liquidity. A slight decline is seen toward the end of 2023 and into 2024, with the ratio dipping near 0.31 by December 2024 before showing a marginal uptick near 0.36 in early 2025. Overall, the current ratio remains consistently under 0.5, suggesting potential challenges in meeting short-term liabilities with current assets.
- Quick Ratio Trends
- The quick ratio parallels the trend of the current ratio but maintains generally lower values, highlighting tighter liquidity when inventories are excluded. Starting at 0.38 in the first quarter of 2020, the quick ratio decreases sharply to as low as 0.25 in late 2021. Throughout 2022 and 2023, it fluctuates narrowly between 0.26 and 0.30, showing limited improvement in quick assets coverage. The ratio modestly increases to about 0.34 in mid-2024 but declines again toward the end of the period analyzed, settling near 0.29 by mid-2025. This pattern indicates chronic liquidity constraints and low availability of immediately liquid assets relative to current liabilities.
- Cash Ratio Trends
- The cash ratio reveals a generally low and variable liquidity position when considering only cash and cash equivalents. Beginning at 0.22 in March 2020, the ratio decreases to a low of approximately 0.04 by late 2021 and early 2022. It remains within a narrow band of 0.04 to 0.06 through 2023 and 2024, with a brief dip to 0.03 in early 2025 before returning to 0.06 mid-year. The persistently low cash ratio suggests very limited cash reserves relative to short-term obligations, implying reliance on other current assets or financing to cover immediate liabilities.
- Overall Liquidity Insights
- Across all three liquidity measures, the company consistently reports ratios well below ideal benchmarks, with the current ratio rarely exceeding 0.5 and quick and cash ratios even lower. This indicates a sustained liquidity risk profile, with potential reliance on non-current assets or external financing to meet short-term commitments. Although some minor improvements and slight recoveries are noted at different intervals, the overall pattern points to constrained liquidity positions throughout the periods covered. The relative stability in the ratios from 2022 onwards suggests a plateauing of liquidity challenges rather than any significant turnaround.
Current Ratio
Charter Communications Inc., current ratio calculation (quarterly data)
| Jun 30, 2025 | 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 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 4,812) | 4,968) | 4,233) | 4,492) | 4,133) | 4,396) | 4,132) | 4,116) | 3,929) | 4,067) | 4,017) | 3,754) | 3,738) | 5,516) | 3,566) | 3,498) | 4,682) | 3,663) | 3,906) | 4,060) | 4,765) | 5,759) | |||||||
| Current liabilities | 14,556) | 13,672) | 13,486) | 13,160) | 10,726) | 10,926) | 13,214) | 12,625) | 11,975) | 12,242) | 12,065) | 11,595) | 11,395) | 13,929) | 12,458) | 12,237) | 10,038) | 9,916) | 9,875) | 10,256) | 9,142) | 13,215) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 0.33 | 0.36 | 0.31 | 0.34 | 0.39 | 0.40 | 0.31 | 0.33 | 0.33 | 0.33 | 0.33 | 0.32 | 0.33 | 0.40 | 0.29 | 0.29 | 0.47 | 0.37 | 0.40 | 0.40 | 0.52 | 0.44 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | 1.90 | 1.77 | 1.84 | 1.95 | 2.08 | 2.15 | 2.10 | 2.04 | 2.17 | 2.35 | 2.38 | 2.52 | 2.81 | 2.87 | 2.93 | 2.98 | 3.15 | 3.10 | 3.07 | 3.41 | 3.41 | 3.66 | |||||||
| Comcast Corp. | 0.91 | 0.65 | 0.68 | 0.72 | 0.66 | 0.59 | 0.60 | 0.70 | 0.76 | 0.69 | 0.78 | 0.84 | 0.88 | 0.86 | 0.85 | 1.03 | 0.92 | 0.96 | 0.93 | 0.93 | 0.97 | 0.87 | |||||||
| Meta Platforms Inc. | 1.97 | 2.66 | 2.98 | 2.73 | 2.83 | 2.68 | 2.67 | 2.57 | 2.32 | 2.07 | 2.20 | 2.57 | 2.52 | 2.81 | 3.15 | 4.23 | 5.43 | 6.08 | 5.05 | 5.51 | 6.02 | 4.60 | |||||||
| Netflix Inc. | 1.34 | 1.20 | 1.22 | 1.13 | 0.95 | 1.07 | 1.12 | 1.29 | 1.33 | 1.26 | 1.17 | 1.14 | 1.05 | 1.05 | 0.95 | 1.17 | 1.23 | 1.27 | 1.25 | 1.24 | 1.12 | 0.82 | |||||||
| Walt Disney Co. | 0.67 | 0.68 | 0.73 | 0.72 | 0.75 | 0.84 | 1.05 | 1.07 | 1.01 | 0.99 | 1.00 | 1.02 | 1.06 | 1.10 | 1.08 | 1.24 | 1.23 | 1.31 | 1.32 | 1.34 | 0.94 | 0.80 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,812 ÷ 14,556 = 0.33
2 Click competitor name to see calculations.
The quarterly financial data reveals notable patterns in the liquidity position over the observed periods. Current assets exhibit fluctuations without a consistent upward or downward trend, with values oscillating between approximately 3,500 million and 5,750 million US dollars. Such variability indicates intermittent changes in short-term asset holdings, potentially reflecting operational cycles or asset management strategies.
In contrast, current liabilities demonstrate a general increasing trend throughout the timeline. Starting from around 9,100 million US dollars in mid-2020, liabilities rise steadily and reach levels exceeding 14,500 million US dollars in the most recent quarters. This persistent growth in short-term obligations suggests an increasing reliance on current liabilities, which could impact liquidity pressure.
The interplay between current assets and current liabilities is reflected in the current ratio, which remains consistently below 1 across all periods. The ratio fluctuates narrowly within a range from about 0.29 to 0.52, with a tendency toward the lower end in recent periods. Such low current ratios indicate a liquidity position where current liabilities substantially exceed current assets, signaling potential challenges in covering short-term obligations with available liquid resources.
Overall, the data indicates a liquidity structure marked by relatively low coverage of current liabilities by current assets. The steady increase in current liabilities without a proportionate increase in current assets results in a consistently weak current ratio. This situation underscores the importance of monitoring working capital management more closely to mitigate potential solvency risks in the short term.
- Current Assets
- Fluctuated between approximately 3,500 million and 5,750 million US dollars without persistent directional trend.
- Current Liabilities
- Exhibited a steady increase from about 9,100 million to over 14,500 million US dollars, indicating growing short-term obligations.
- Current Ratio
- Remained consistently below 1, ranging from 0.29 to 0.52, reflecting limited liquidity buffer and potential short-term solvency concerns.
Quick Ratio
Charter Communications Inc., quick ratio calculation (quarterly data)
| Jun 30, 2025 | 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 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 606) | 796) | 459) | 721) | 602) | 661) | 709) | 571) | 478) | 534) | 645) | 480) | 483) | 2,431) | 601) | 466) | 1,711) | 772) | 998) | 1,283) | 2,097) | 2,908) | |||||||
| Accounts receivable, less allowance for doubtful accounts | 3,549) | 3,311) | 3,097) | 3,067) | 3,000) | 3,004) | 2,965) | 2,932) | 2,864) | 2,851) | 2,921) | 2,841) | 2,779) | 2,530) | 2,579) | 2,645) | 2,583) | 2,395) | 2,201) | 2,068) | 1,994) | 2,091) | |||||||
| Total quick assets | 4,155) | 4,107) | 3,556) | 3,788) | 3,602) | 3,665) | 3,674) | 3,503) | 3,342) | 3,385) | 3,566) | 3,321) | 3,262) | 4,961) | 3,180) | 3,111) | 4,294) | 3,167) | 3,199) | 3,351) | 4,091) | 4,999) | |||||||
| Current liabilities | 14,556) | 13,672) | 13,486) | 13,160) | 10,726) | 10,926) | 13,214) | 12,625) | 11,975) | 12,242) | 12,065) | 11,595) | 11,395) | 13,929) | 12,458) | 12,237) | 10,038) | 9,916) | 9,875) | 10,256) | 9,142) | 13,215) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 0.29 | 0.30 | 0.26 | 0.29 | 0.34 | 0.34 | 0.28 | 0.28 | 0.28 | 0.28 | 0.30 | 0.29 | 0.29 | 0.36 | 0.26 | 0.25 | 0.43 | 0.32 | 0.32 | 0.33 | 0.45 | 0.38 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | 1.72 | 1.60 | 1.66 | 1.76 | 1.90 | 1.98 | 1.94 | 1.87 | 2.02 | 2.20 | 2.22 | 2.29 | 2.62 | 2.72 | 2.79 | 2.85 | 3.01 | 2.94 | 2.95 | 3.27 | 3.26 | 3.46 | |||||||
| Comcast Corp. | 0.71 | 0.51 | 0.53 | 0.60 | 0.54 | 0.49 | 0.50 | 0.56 | 0.61 | 0.55 | 0.62 | 0.63 | 0.68 | 0.71 | 0.71 | 0.89 | 0.80 | 0.84 | 0.81 | 0.81 | 0.85 | 0.70 | |||||||
| Meta Platforms Inc. | 1.71 | 2.50 | 2.82 | 2.57 | 2.69 | 2.55 | 2.55 | 2.43 | 2.20 | 1.91 | 2.01 | 2.34 | 2.34 | 2.62 | 2.94 | 3.94 | 5.09 | 5.86 | 4.89 | 5.33 | 5.81 | 4.48 | |||||||
| Netflix Inc. | 0.94 | 0.86 | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | 0.71 | 0.94 | 0.99 | 1.06 | 1.05 | 1.06 | 0.94 | 0.66 | |||||||
| Walt Disney Co. | 0.54 | 0.55 | 0.54 | 0.53 | 0.57 | 0.69 | 0.85 | 0.87 | 0.83 | 0.83 | 0.83 | 0.87 | 0.91 | 0.98 | 0.94 | 1.07 | 1.07 | 1.17 | 1.15 | 1.16 | 0.81 | 0.69 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,155 ÷ 14,556 = 0.29
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrate notable fluctuations over the analyzed periods. Beginning at approximately $5.0 billion in the first quarter of 2020, there is a decline through the middle of 2020, reaching a low near $3.2 billion by the end of that year. Subsequently, the value oscillates between a low of around $3.1 billion and a high close to $5.0 billion, with peaks generally recurring at the start of each year. The most recent figures from early 2024 to mid-2025 range between approximately $3.6 billion and $4.2 billion, showing moderate improvement compared to the lows in 2020 but without a clear upward trend.
- Current Liabilities
- Current liabilities exhibit an overall increasing trend with some variation over time. Starting at about $13.2 billion in early 2020, liabilities drop significantly in the second quarter to roughly $9.1 billion, before progressively rising again. Fluctuations occur throughout the subsequent quarters, with the highest values reaching approximately $14.5 billion by mid-2025. There is a pattern of seasonal increases, often peaking towards the later quarters of each year, indicating possibly cyclical or operational factors affecting short-term obligations.
- Quick Ratio
- The quick ratio remains consistently below 1.0 throughout the period, indicating quick assets are insufficient to fully cover current liabilities at any point. It starts at 0.38 in early 2020, temporarily improves to 0.45 in the second quarter of 2020, but then trends downward and stabilizes in a range mostly between 0.25 and 0.36. There is a tendency for the ratio to peak slightly in early 2020 and early 2022 but generally hovers around 0.28 to 0.34 in most recent quarters. This persistent low ratio suggests constrained liquidity relative to short-term liabilities, implying potential pressure on the company's ability to meet immediate obligations solely with quick assets.
- Summary
- Overall, the data reflects a company experiencing variability in liquid asset levels and steadily rising current liabilities, resulting in a consistently low quick ratio. While quick assets have occasional rebounds, they do not consistently keep pace with increasing current liabilities, signifying relatively tight liquidity conditions across the reported periods. The recurring dips and rises in both assets and liabilities indicate possible seasonal operational cycles or financial strategies affecting working capital management. The persistent quick ratio below 0.5 warrants monitoring, as it emphasizes limited quick asset coverage of current liabilities, which could pose liquidity risk under adverse conditions.
Cash Ratio
Charter Communications Inc., cash ratio calculation (quarterly data)
| Jun 30, 2025 | 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 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 606) | 796) | 459) | 721) | 602) | 661) | 709) | 571) | 478) | 534) | 645) | 480) | 483) | 2,431) | 601) | 466) | 1,711) | 772) | 998) | 1,283) | 2,097) | 2,908) | |||||||
| Total cash assets | 606) | 796) | 459) | 721) | 602) | 661) | 709) | 571) | 478) | 534) | 645) | 480) | 483) | 2,431) | 601) | 466) | 1,711) | 772) | 998) | 1,283) | 2,097) | 2,908) | |||||||
| Current liabilities | 14,556) | 13,672) | 13,486) | 13,160) | 10,726) | 10,926) | 13,214) | 12,625) | 11,975) | 12,242) | 12,065) | 11,595) | 11,395) | 13,929) | 12,458) | 12,237) | 10,038) | 9,916) | 9,875) | 10,256) | 9,142) | 13,215) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 0.04 | 0.06 | 0.03 | 0.05 | 0.06 | 0.06 | 0.05 | 0.05 | 0.04 | 0.04 | 0.05 | 0.04 | 0.04 | 0.17 | 0.05 | 0.04 | 0.17 | 0.08 | 0.10 | 0.13 | 0.23 | 0.22 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | 1.09 | 1.04 | 1.07 | 1.15 | 1.29 | 1.40 | 1.36 | 1.39 | 1.52 | 1.67 | 1.64 | 1.76 | 2.04 | 2.16 | 2.17 | 2.30 | 2.44 | 2.44 | 2.41 | 2.75 | 2.77 | 2.92 | |||||||
| Comcast Corp. | 0.30 | 0.20 | 0.18 | 0.23 | 0.17 | 0.16 | 0.15 | 0.19 | 0.22 | 0.17 | 0.17 | 0.20 | 0.25 | 0.30 | 0.30 | 0.44 | 0.42 | 0.49 | 0.41 | 0.46 | 0.49 | 0.31 | |||||||
| Meta Platforms Inc. | 1.26 | 2.07 | 2.32 | 2.13 | 2.15 | 2.07 | 2.05 | 2.00 | 1.79 | 1.48 | 1.51 | 1.84 | 1.82 | 2.08 | 2.27 | 3.26 | 4.31 | 5.05 | 4.14 | 4.66 | 5.15 | 4.00 | |||||||
| Netflix Inc. | 0.94 | 0.86 | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | 0.71 | 0.94 | 0.99 | 1.06 | 1.05 | 1.06 | 0.94 | 0.66 | |||||||
| Walt Disney Co. | 0.17 | 0.16 | 0.17 | 0.17 | 0.20 | 0.23 | 0.46 | 0.41 | 0.37 | 0.31 | 0.40 | 0.42 | 0.45 | 0.48 | 0.51 | 0.59 | 0.60 | 0.64 | 0.67 | 0.75 | 0.40 | 0.20 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 606 ÷ 14,556 = 0.04
2 Click competitor name to see calculations.
- Cash Assets Trend
- The total cash assets exhibit a fluctuating pattern across the quarters. Initially, there is a noticeable decline from $2,908 million at the end of Q1 2020 to $998 million by Q4 2020. This is followed by a further dip reaching a low of $466 million in Q3 2021. Subsequently, cash assets recover somewhat, peaking at $2,431 million in Q1 2022. After this peak, cash balances generally decrease again, with intermittent mild recoveries, settling between approximately $459 million and $796 million in the quarters from Q1 2025 onward. The trend reveals volatility in cash holdings, with sharp increases and declines reflecting possibly varying operational or financing activities over time.
- Current Liabilities Trend
- Current liabilities show a generally increasing trend over the periods. Starting from $13,215 million in Q1 2020, liabilities drop to a low of about $9,142 million in Q2 2020, but then rise again and mostly maintain a level above $10,000 million subsequently. From Q4 2021 onward, current liabilities steadily increase, reaching $14,556 million by Q2 2025. This upward movement suggests an expansion in short-term obligations, which may reflect increased operational scale, rising costs, or other short-term financial commitments.
- Cash Ratio Analysis
- The cash ratio, which measures liquidity by comparing cash assets to current liabilities, consistently remains low throughout the analyzed timeframe. Starting at 0.22 in Q1 2020, the ratio declines rapidly to as low as 0.04 in several quarters between Q3 2021 and Q4 2023. Even with minor fluctuations, the ratio rarely exceeds 0.06 after mid-2021 and dips to as low as 0.03 in Q1 2025. This persistent low ratio indicates limited immediate liquidity, suggesting that cash reserves are only a small fraction of current liabilities, pointing towards potential reliance on other liquid assets or financing arrangements to meet short-term obligations.
- Overall Financial Position Implications
- The simultaneous observation of fluctuating and often low cash reserves against a backdrop of steadily rising current liabilities denotes a cautious liquidity stance. The company appears to manage with constrained cash buffers in relation to its current liabilities, which could imply a need for effective cash flow management and possibly a focus on optimizing working capital or securing alternative liquidity sources. The cash ratio's sustained low levels might warrant attention from stakeholders regarding the ability to cover short-term debts solely with cash.