Avient Corp (AVNT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 544,500 | 545,800 | 641,100 | 601,200 | 649,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 756,100 | 773,600 | 869,400 | 946,300 | 804,600 |
| Cash ratio | 0.72 | 0.71 | 0.74 | 0.64 | 0.81 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($544,500K
+ $—K)
÷ $756,100K
= 0.72
The cash ratio of Avient Corp has ranged from 0.64 to 0.81 over the past five years. This ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that the company has a greater ability to meet its short-term obligations using its readily available cash resources.
Avient Corp's cash ratio has shown some variability, with a slight decrease from 0.81 in 2020 to 0.64 in 2021, followed by a modest recovery to 0.74 in 2022. The ratio remained relatively stable in 2023 and 2024, hovering around 0.71 to 0.72, indicating that the company has maintained a consistent level of liquidity to meet its short-term financial commitments.
Overall, while the cash ratio of Avient Corp has fluctuated slightly over the years, it generally suggests that the company has maintained a reasonable level of liquidity to cover its short-term obligations, providing a cushion against potential financial distress.
Peer comparison
Dec 31, 2024