Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Builders FirstSource Inc., liquidity ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The liquidity ratios show notable variation over the analyzed periods, reflecting changes in short-term financial health and cash management.
- Current Ratio
- The current ratio fluctuates moderately, starting at 2.09 in March 2018 and generally trending downward until the end of 2019, reaching 1.59. From 2020 onwards, it exhibits some recovery and occasional fluctuations, peaking at 2.18 in June 2021 before gradually declining to 1.76 by September 2023. Overall, the ratio remains above 1.5 throughout, indicating the company consistently maintains sufficient current assets to cover current liabilities, though the downward trend towards recent periods suggests some reduction in liquidity buffer.
- Quick Ratio
- The quick ratio follows a somewhat similar pattern, albeit at lower levels compared to the current ratio. It starts at 1.09 in March 2018, declines to a low of 0.86 by December 2019, and then shows an improvement through 2020 and 2021 with a high of 1.24 in September 2021. Subsequently, it decreases slightly and stabilizes around 1.03 to 1.10 from 2022 through the third quarter of 2023. This indicates that the company’s liquid assets excluding inventories generally cover current liabilities, though with some degree of volatility over the years.
- Cash Ratio
- The cash ratio reveals more pronounced variability and overall lower absolute values compared to the other liquidity ratios. Beginning from very low levels near 0.01 in early 2018, it remains minimal until a marked increase during 2020, peaking at 0.41 in June 2020, likely reflecting a temporary accumulation of cash or equivalents perhaps linked to external financing or operational changes. Post-2020, the cash ratio declines again and fluctuates between 0.04 and 0.11 across 2021 and 2022 before settling around 0.04 to 0.08 in 2023 quarters. Despite increases, the ratio stays low, indicating the company retains a limited amount of cash and cash equivalents relative to current liabilities.
In summary, the liquidity position as indicated by the current and quick ratios suggests generally adequate coverage of short-term obligations, although recent downward pressures and fluctuations may warrant attention. The cash ratio’s lower values and volatility imply reliance on other current assets beyond cash for liquidity needs. The peaks during 2020 could be associated with strategic liquidity management amid uncertain market conditions during that period.
Current Ratio
Builders FirstSource Inc., current ratio calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Current assets | 3,574,107) | 3,605,217) | 3,347,289) | 3,497,647) | 4,420,131) | 5,277,316) | 5,379,933) | 3,968,269) | 4,231,234) | 4,915,075) | 3,570,668) | 2,223,682) | 2,061,742) | 1,801,587) | 1,604,881) | 1,306,867) | 1,430,077) | 1,433,958) | 1,385,754) | 1,373,751) | 1,613,974) | 1,726,952) | 1,503,115) | |||||||
| Current liabilities | 2,026,682) | 1,955,856) | 1,831,931) | 1,842,779) | 2,293,727) | 2,528,813) | 2,683,067) | 2,128,711) | 2,033,180) | 2,252,748) | 1,861,178) | 1,074,853) | 1,084,871) | 933,106) | 859,013) | 821,301) | 863,745) | 848,219) | 737,911) | 731,259) | 771,762) | 846,750) | 719,391) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Current ratio1 | 1.76 | 1.84 | 1.83 | 1.90 | 1.93 | 2.09 | 2.01 | 1.86 | 2.08 | 2.18 | 1.92 | 2.07 | 1.90 | 1.93 | 1.87 | 1.59 | 1.66 | 1.69 | 1.88 | 1.88 | 2.09 | 2.04 | 2.09 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Boeing Co. | 1.15 | 1.17 | 1.16 | 1.22 | 1.22 | 1.25 | 1.30 | 1.33 | 1.36 | 1.35 | 1.33 | 1.39 | 1.42 | 1.41 | 1.17 | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 1.45 | 1.33 | 1.43 | 1.39 | 1.41 | 1.45 | 1.44 | 1.46 | 1.61 | 1.56 | 1.60 | 1.53 | 1.54 | 1.50 | 1.42 | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 1.45 | 1.53 | 1.50 | 1.38 | 1.28 | 0.97 | 0.99 | 1.04 | 1.27 | 1.10 | 1.51 | 1.56 | 1.49 | 1.50 | 1.75 | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | 1.17 | 1.25 | 1.25 | 1.16 | 1.10 | 1.13 | 1.19 | 1.28 | 1.80 | 1.81 | 1.96 | 1.58 | 1.27 | 1.22 | 1.14 | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 1.35 | 1.41 | 1.26 | 1.25 | 1.24 | 1.20 | 1.21 | 1.30 | 1.29 | 1.41 | 1.43 | 1.47 | 1.64 | 1.63 | 1.30 | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 1.36 | 1.36 | 1.30 | 1.32 | 1.28 | 1.27 | 1.27 | 1.42 | 1.42 | 1.36 | 1.38 | 1.39 | 1.33 | 1.31 | 1.23 | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 1.03 | 1.10 | 1.13 | 1.09 | 1.09 | 1.10 | 1.16 | 1.19 | 1.23 | 1.17 | 1.17 | 1.21 | 1.22 | 1.20 | 1.23 | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 3,574,107 ÷ 2,026,682 = 1.76
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit notable fluctuation over the periods analyzed. Initially, from March 2018 to December 2018, there is a decline from approximately 1.5 billion to 1.37 billion USD. The asset value then stabilizes somewhat throughout 2019 before experiencing a significant upward trend starting in early 2020. This growth peaks in mid-2021, reaching close to 4.9 billion USD, before a gradual decline occurs through late 2022 and into 2023, settling around 3.5 billion USD by the third quarter of 2023. Overall, the data indicate periods of both contraction and expansion, with particularly strong asset increases during 2020 and 2021.
- Current Liabilities
- Current liabilities follow a somewhat parallel pattern to current assets but with less pronounced volatility. They begin at roughly 719 million USD in early 2018, rising steadily to approximately 848 million mid-2019. After this, liabilities continue to grow, surging significantly during 2021 to over 2.25 billion USD by mid-year. A distinct high point occurs here followed by a modest decrease heading into 2023, with liabilities around 2 billion USD in the latest quarter. Notably, the increase in liabilities appears to lag slightly behind the increases in current assets.
- Current Ratio
- The current ratio shows a general downward trend from early 2018 through late 2019, starting above 2.0 and declining to approximately 1.59 by the end of 2019. A recovery phase starts in 2020, with the ratio improving back above 2.0 during parts of 2021 and 2022. However, it appears to trend downward again starting in late 2022, settling between 1.7 and 1.8 in 2023. The fluctuations in the current ratio suggest variations in liquidity, with periods of greater short-term financial strength alternating with times of relative weakening.
- Overall Analysis
- The financial trends reveal that the company experienced substantial growth in both current assets and current liabilities particularly in the years 2020 and 2021. The sharp increase in current assets could be linked to expanded operations or inventory buildup, while higher current liabilities indicate increased short-term obligations or accruals in the same period. The current ratio movements suggest that, despite the growth in assets, liquidity remained somewhat balanced but slightly weakened toward the most recent period. Attention to managing short-term liabilities and maintaining an adequate liquidity cushion might be necessary to sustain financial health going forward.
Quick Ratio
Builders FirstSource Inc., quick ratio calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 88,096) | 89,316) | 144,407) | 80,445) | 84,982) | 166,185) | 281,802) | 42,603) | 224,735) | 90,266) | 19,118) | 423,806) | 340,927) | 385,461) | 163,872) | 14,096) | 43,271) | 10,552) | 11,724) | 10,127) | 34,446) | 13,196) | 10,069) | |||||||
| Accounts receivable, less allowances | 1,618,107) | 1,618,666) | 1,429,939) | 1,448,139) | 1,924,912) | 2,407,841) | 2,290,513) | 1,708,796) | 2,134,269) | 2,174,674) | 1,749,650) | 880,018) | 860,842) | 719,684) | 702,192) | 614,946) | 721,134) | 715,405) | 648,942) | 654,170) | 805,317) | 820,396) | 710,448) | |||||||
| Other receivables | 247,431) | 245,893) | 144,605) | 234,966) | 268,694) | 228,191) | 223,070) | 255,075) | 167,309) | 137,304) | 96,835) | 76,436) | 64,626) | 45,164) | 54,647) | 77,447) | 49,526) | 54,257) | 50,833) | 68,637) | 59,389) | 71,345) | 60,762) | |||||||
| Contract assets | 187,987) | 190,514) | 176,116) | 183,700) | 240,346) | 270,714) | 240,668) | 207,587) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total quick assets | 2,141,621) | 2,144,389) | 1,895,067) | 1,947,250) | 2,518,934) | 3,072,931) | 3,036,053) | 2,214,061) | 2,526,313) | 2,402,244) | 1,865,603) | 1,380,260) | 1,266,395) | 1,150,309) | 920,711) | 706,489) | 813,931) | 780,214) | 711,499) | 732,934) | 899,152) | 904,937) | 781,279) | |||||||
| Current liabilities | 2,026,682) | 1,955,856) | 1,831,931) | 1,842,779) | 2,293,727) | 2,528,813) | 2,683,067) | 2,128,711) | 2,033,180) | 2,252,748) | 1,861,178) | 1,074,853) | 1,084,871) | 933,106) | 859,013) | 821,301) | 863,745) | 848,219) | 737,911) | 731,259) | 771,762) | 846,750) | 719,391) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Quick ratio1 | 1.06 | 1.10 | 1.03 | 1.06 | 1.10 | 1.22 | 1.13 | 1.04 | 1.24 | 1.07 | 1.00 | 1.28 | 1.17 | 1.23 | 1.07 | 0.86 | 0.94 | 0.92 | 0.96 | 1.00 | 1.17 | 1.07 | 1.09 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Boeing Co. | 0.28 | 0.28 | 0.29 | 0.32 | 0.29 | 0.28 | 0.29 | 0.34 | 0.38 | 0.38 | 0.37 | 0.41 | 0.42 | 0.47 | 0.30 | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 0.76 | 0.74 | 0.79 | 0.79 | 0.78 | 0.81 | 0.84 | 0.89 | 1.00 | 1.02 | 1.08 | 1.02 | 1.01 | 0.98 | 0.91 | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 0.84 | 0.85 | 0.78 | 0.73 | 0.65 | 0.50 | 0.51 | 0.54 | 0.69 | 0.44 | 0.66 | 0.68 | 0.63 | 0.57 | 0.68 | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | 0.76 | 0.84 | 0.86 | 0.81 | 0.73 | 0.75 | 0.82 | 0.93 | 0.90 | 0.90 | 1.06 | 1.27 | 1.01 | 0.97 | 0.91 | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 0.92 | 0.98 | 0.84 | 0.88 | 0.85 | 0.82 | 0.84 | 0.94 | 0.96 | 1.06 | 1.08 | 1.15 | 1.27 | 1.26 | 0.93 | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 1.14 | 1.14 | 1.07 | 1.09 | 1.06 | 1.03 | 1.03 | 1.15 | 1.18 | 1.10 | 1.09 | 1.05 | 1.08 | 1.04 | 0.96 | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 0.63 | 0.68 | 0.71 | 0.69 | 0.70 | 0.71 | 0.76 | 0.81 | 0.82 | 0.79 | 0.79 | 0.78 | 0.84 | 0.75 | 0.81 | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,141,621 ÷ 2,026,682 = 1.06
2 Click competitor name to see calculations.
The data indicates fluctuations in liquidity and current liabilities over the examined periods. Total quick assets demonstrated a general upward trend from March 2018 through June 2021, peaking at approximately 2.53 million US dollars. This was followed by volatility, with declines observed through December 2022 and partial recoveries by September 2023.
Current liabilities showed an overall increase across the timeline, starting from around 719 thousand US dollars in March 2018 and rising significantly to above 2.02 million US dollars by September 2023. The pattern reveals several periods of sharp increases, notably between March 2020 and June 2021, aligning closely with the rise in quick assets.
The quick ratio experienced fluctuations from slightly above 1.0 in early 2018 to dips below 1.0 during 2019, reaching a minimum ratio of 0.86 by December 2019. This suggests periods of weaker liquidity relative to short-term obligations during that year. From March 2020 onwards, the quick ratio generally improved, reaching peaks above 1.2 in several quarters, signifying strengthened liquidity positions. However, the ratio displayed minor declines in 2022 and 2023, remaining slightly above or near 1.0, suggesting maintained but moderated liquidity coverage.
The interplay between rising current liabilities and the increase in quick assets indicates active management of short-term obligations through asset availability. The swings in the quick ratio reflect the dynamic financial environment faced, with liquidity strengthening during the pandemic onset and some easing afterward.
- Total Quick Assets
- Generally increased from 781 million to over 2.5 million US dollars from 2018 to mid-2021, followed by volatility with declines by late 2022 and partial rebounds into 2023.
- Current Liabilities
- Rose steadily from approximately 719 million to over 2 million US dollars from 2018 to 2023, with notable sharp increases coinciding with quick asset peaks during 2020-2021.
- Quick Ratio
- Varied between 0.86 and 1.28, indicating shifts in liquidity strength, with lower values in 2019 and stronger liquidity during 2020-2021. Maintained around or above 1.0 in recent periods, suggesting balanced short-term financial health.
Cash Ratio
Builders FirstSource Inc., cash ratio calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 88,096) | 89,316) | 144,407) | 80,445) | 84,982) | 166,185) | 281,802) | 42,603) | 224,735) | 90,266) | 19,118) | 423,806) | 340,927) | 385,461) | 163,872) | 14,096) | 43,271) | 10,552) | 11,724) | 10,127) | 34,446) | 13,196) | 10,069) | |||||||
| Total cash assets | 88,096) | 89,316) | 144,407) | 80,445) | 84,982) | 166,185) | 281,802) | 42,603) | 224,735) | 90,266) | 19,118) | 423,806) | 340,927) | 385,461) | 163,872) | 14,096) | 43,271) | 10,552) | 11,724) | 10,127) | 34,446) | 13,196) | 10,069) | |||||||
| Current liabilities | 2,026,682) | 1,955,856) | 1,831,931) | 1,842,779) | 2,293,727) | 2,528,813) | 2,683,067) | 2,128,711) | 2,033,180) | 2,252,748) | 1,861,178) | 1,074,853) | 1,084,871) | 933,106) | 859,013) | 821,301) | 863,745) | 848,219) | 737,911) | 731,259) | 771,762) | 846,750) | 719,391) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Cash ratio1 | 0.04 | 0.05 | 0.08 | 0.04 | 0.04 | 0.07 | 0.11 | 0.02 | 0.11 | 0.04 | 0.01 | 0.39 | 0.31 | 0.41 | 0.19 | 0.02 | 0.05 | 0.01 | 0.02 | 0.01 | 0.04 | 0.02 | 0.01 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Boeing Co. | 0.14 | 0.15 | 0.16 | 0.19 | 0.16 | 0.14 | 0.15 | 0.20 | 0.23 | 0.24 | 0.24 | 0.29 | 0.29 | 0.35 | 0.16 | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 0.20 | 0.21 | 0.21 | 0.22 | 0.21 | 0.21 | 0.22 | 0.31 | 0.36 | 0.39 | 0.43 | 0.36 | 0.37 | 0.35 | 0.27 | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 0.25 | 0.20 | 0.09 | 0.09 | 0.08 | 0.07 | 0.06 | 0.08 | 0.11 | 0.06 | 0.20 | 0.19 | 0.13 | 0.09 | 0.08 | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | 0.42 | 0.49 | 0.52 | 0.44 | 0.35 | 0.37 | 0.44 | 0.54 | 0.52 | 0.50 | 0.67 | 0.78 | 0.70 | 0.70 | 0.67 | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 0.46 | 0.51 | 0.40 | 0.51 | 0.44 | 0.43 | 0.49 | 0.59 | 0.60 | 0.68 | 0.71 | 0.79 | 0.87 | 0.87 | 0.51 | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 0.21 | 0.21 | 0.14 | 0.16 | 0.15 | 0.11 | 0.12 | 0.26 | 0.18 | 0.18 | 0.20 | 0.23 | 0.24 | 0.19 | 0.13 | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 0.12 | 0.13 | 0.15 | 0.16 | 0.14 | 0.13 | 0.17 | 0.22 | 0.22 | 0.23 | 0.24 | 0.25 | 0.28 | 0.20 | 0.25 | — | — | — | — | — | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 88,096 ÷ 2,026,682 = 0.04
2 Click competitor name to see calculations.
The financial data reveals several notable trends in liquidity and short-term financial obligations over the analyzed periods.
- Total Cash Assets
- Total cash assets exhibit significant fluctuations. From early 2018 to the end of 2019, cash levels remained relatively modest, generally below 50,000 thousand US dollars, with the exception of spikes notably in the quarters ending September 2018 and September 2019. Starting in the first quarter of 2020, there is a sharp and substantial increase in cash holdings, peaking at over 420,000 thousand US dollars in December 2020. However, following this peak, cash assets decreased sharply through 2021, reaching lows similar to earlier periods. In 2022 and into mid-2023, cash assets again displayed variability but at significantly lower levels than the 2020 peak, generally below 150,000 thousand US dollars. These swings suggest episodic inflows or significant liquidity events during 2020 and subsequent stabilization at lower cash levels.
- Current Liabilities
- Current liabilities have generally demonstrated an upward trend over the examined period. Starting at approximately 719,000 thousand US dollars in early 2018, the figure increased steadily, reaching peaks above 2,680,000 thousand US dollars by mid-2022. After the peak, current liabilities decreased somewhat but remained above 1,800,000 thousand US dollars through mid-2023. The growth in current liabilities over time indicates a rising level of short-term obligations, especially pronounced from 2020 onwards, which may reflect increased operational scale, borrowing, or working capital needs.
- Cash Ratio
- The cash ratio, which measures the company's ability to cover current liabilities with cash, remained very low throughout the entire period, below 0.1 in most quarters. Notably, there was a marked increase in this ratio during 2020, with values climbing to as high as 0.41 in mid-2020, reflecting the dramatic cash increase during that year. However, this improvement was short-lived, as the ratio rapidly declined post-2020 and corresponded with decreasing cash balances and rising current liabilities. By mid-2023, the cash ratio reverted to a low level around 0.04 to 0.08, indicating limited immediate liquidity relative to current liabilities.
In summary, the data portrays a company experiencing significant volatility in cash holdings, especially with a large accumulation in 2020 followed by a rapid decline. Concurrently, current liabilities have consistently risen, resulting in a generally low cash liquidity position relative to short-term obligations. The temporary cash surges improved liquidity ratios significantly but were not sustained, emphasizing potential liquidity management challenges or varying capital structures over the periods analyzed.