Brunswick Corporation (BC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 269,000 | 467,800 | 595,600 | 354,500 | 519,600 |
| Short-term investments | US$ in thousands | 800 | 800 | 4,500 | 800 | 56,700 |
| Total current liabilities | US$ in thousands | 1,279,900 | 1,752,100 | 1,489,900 | 1,442,200 | 1,079,200 |
| Cash ratio | 0.21 | 0.27 | 0.40 | 0.25 | 0.53 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($269,000K
+ $800K)
÷ $1,279,900K
= 0.21
The cash ratio of Brunswick Corporation has displayed fluctuations over the years. It stood at 0.53 on December 31, 2020, indicating that the company had $0.53 in cash and cash equivalents for every $1 of current liabilities. However, it decreased to 0.25 on December 31, 2021, suggesting a lower proportion of cash to cover short-term obligations.
In the following years, the cash ratio improved slightly, reaching 0.40 on December 31, 2022, but then dropped to 0.27 on December 31, 2023. By December 31, 2024, the cash ratio further decreased to 0.21, indicating a decline in the company's ability to cover its current liabilities with cash on hand.
These fluctuations in the cash ratio over the years may indicate changes in Brunswick Corporation's liquidity position and its ability to meet short-term financial obligations using available cash resources. It is essential for the company to closely monitor and manage its cash position to ensure financial stability and meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024