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.