Avient Corp (AVNT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	544,500	505,700	489,400	444,300	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
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	100	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	756,100	894,500	1,498,200	732,100	773,600	727,100	776,500	837,200	869,400	1,555,600	1,570,600	1,556,300	946,300	961,800	934,300	863,600	804,600	768,900	624,300	687,800
Cash ratio		0.72	0.57	0.33	0.61	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

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, representing the company's ability to cover its short-term liabilities with its cash and cash equivalents, has shown fluctuations over the period from March 31, 2020, to December 31, 2024. Initially, the cash ratio was relatively high at 1.86 on March 31, 2020, indicating a strong cash position compared to current liabilities.

The ratio increased significantly to 3.17 on June 30, 2020, suggesting an improved liquidity position. However, there was a notable decline in the cash ratio to 0.75 on September 30, 2020, and further to 0.81 on December 31, 2020, signaling a lower ability to cover short-term obligations with cash.

From March 31, 2021, to June 30, 2024, the cash ratio fluctuated between 0.33 and 0.74, indicating some variability in Avient Corp's liquidity position during this period. The ratio dropped to 0.33 on June 30, 2024, reflecting a lower cash position relative to short-term liabilities.

Overall, the trend in Avient Corp's cash ratio suggests some volatility in its liquidity position, with periods of stronger and weaker cash coverage of short-term obligations. Maintaining a healthy cash ratio is essential for the company to meet its financial obligations promptly and weather any unforeseen financial challenges.