Ball Corporation (BALL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 695,000 | 548,000 | 563,000 | 1,366,000 | 1,798,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,185,000 | 7,008,000 | 5,953,000 | 4,444,000 | 5,577,000 |
| Cash ratio | 0.11 | 0.08 | 0.09 | 0.31 | 0.32 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($695,000K
+ $—K)
÷ $6,185,000K
= 0.11
The cash ratio for Ball Corp. has fluctuated over the past five years. In 2023, the cash ratio stands at 0.16, indicating that the company has $0.16 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement compared to the previous year's cash ratio of 0.10.
However, in 2021 and 2022, the cash ratio was 0.15 and 0.10 respectively, suggesting that the company had a lower level of liquidity to cover its short-term obligations during those years. The significant increase in the cash ratio in 2020, where it reached 0.36, indicates that Ball Corp. had a strong cash position relative to its current liabilities that year.
Comparing the most recent ratio to the one from 2019, which was 0.35, we see a slight decrease in the cash ratio in 2023. This implies that despite the improvement from the previous year, there may still be room for enhancement in terms of liquidity management at Ball Corp. Overall, the company's cash ratio has shown variability over the years, highlighting the importance of monitoring and managing liquidity effectively.
Peer comparison
Dec 31, 2023