Avient Corp (AVNT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 545,800 | 641,100 | 601,200 | 649,500 | 864,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 773,600 | 869,400 | 940,600 | 801,000 | 702,500 |
| Cash ratio | 0.71 | 0.74 | 0.64 | 0.81 | 1.23 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($545,800K
+ $—K)
÷ $773,600K
= 0.71
The cash ratio of Avient Corp has fluctuated over the years, ranging from 0.77 to 1.31. The ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
A cash ratio of 0.85 in 2023 indicates that for every dollar of current liabilities, Avient Corp has $0.85 in cash and cash equivalents available. This suggests a slightly lower liquidity position compared to the previous year.
The ratio was highest at 1.31 in 2019, indicating a stronger ability to meet short-term obligations with readily available cash. However, the ratio dropped to 0.77 in 2021, signaling a potential liquidity strain during that period.
Overall, fluctuations in the cash ratio reflect changes in Avient Corp's cash management practices and liquidity position over the years. It is essential for the company to maintain a balance between cash reserves and investments to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023