Brunswick Corporation (BC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 467,800 | 595,600 | 354,500 | 519,600 | 320,300 |
| Short-term investments | US$ in thousands | 11,900 | 17,400 | 13,000 | 67,400 | 12,400 |
| Total current liabilities | US$ in thousands | 1,752,100 | 1,489,900 | 1,442,200 | 1,079,200 | 944,400 |
| Cash ratio | 0.27 | 0.41 | 0.25 | 0.54 | 0.35 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($467,800K
+ $11,900K)
÷ $1,752,100K
= 0.27
The cash ratio for Brunswick Corp. has fluctuated over the past five years. In 2020, the company had a relatively high cash ratio of 0.57, indicating that it had a significant amount of cash and cash equivalents relative to its current liabilities. However, in 2021 and 2023, the cash ratio decreased to 0.29 and 0.30, respectively, suggesting that the company had a lower level of cash compared to its short-term obligations.
The cash ratio improved in 2022 to 0.45, indicating a stronger liquidity position that year. Overall, the downward trend in the cash ratio from 2020 to 2023 may raise concerns about Brunswick Corp.'s ability to meet its short-term financial obligations with its available cash reserves. It is important for investors and stakeholders to monitor the company's liquidity position closely, as a low cash ratio could potentially signal financial distress or difficulties in meeting upcoming financial obligations.
Peer comparison
Dec 31, 2023