Avient Corp (AVNT)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 545,800 | 439,600 | 528,700 | 582,700 | 641,100 | 544,400 | 645,100 | 562,600 | 601,200 | 545,200 | 616,200 | 594,500 | 649,500 | 577,300 | 1,977,000 | 1,280,200 | 864,700 | 199,600 | 125,500 | 108,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 773,600 | 727,100 | 776,500 | 837,200 | 869,400 | 1,555,600 | 1,570,600 | 1,559,600 | 940,600 | 961,800 | 934,300 | 863,600 | 801,000 | 768,900 | 624,300 | 687,800 | 702,500 | 625,500 | 607,300 | 570,300 |
| Cash ratio | 0.71 | 0.60 | 0.68 | 0.70 | 0.74 | 0.35 | 0.41 | 0.36 | 0.64 | 0.57 | 0.66 | 0.69 | 0.81 | 0.75 | 3.17 | 1.86 | 1.23 | 0.32 | 0.21 | 0.19 |
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 measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position and ability to meet immediate obligations.
Looking at the trend for Avient Corp's cash ratio over the past eight quarters, we can see fluctuations in the values. In Q4 2023, the cash ratio stood at 0.85, showing a slight increase from the previous quarter. This indicates that Avient Corp had $0.85 in cash and cash equivalents for every $1 of its current liabilities in this quarter.
Comparing Q4 2023 to the same period in the previous year, we note that the cash ratio was lower in Q4 2022 at 0.87. This could suggest a relatively stronger liquidity position, as the company had more cash on hand relative to its short-term obligations in the prior year.
Overall, while the cash ratio for Avient Corp has fluctuated over the quarters analyzed, the company appears to have maintained a relatively stable liquidity position. It is essential to consider the trend in conjunction with other financial ratios and factors impacting the company to draw a comprehensive assessment of its financial health and liquidity management.
Peer comparison
Dec 31, 2023