Brunswick Corporation (BC)
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 | 467,800 | 330,900 | 477,500 | 387,800 | 595,600 | 457,400 | 566,700 | 680,100 | 354,500 | 1,486,400 | 590,200 | 471,900 | 519,600 | 650,400 | 541,500 | 502,900 | 320,300 | 366,200 | 656,100 | 161,500 |
| Short-term investments | US$ in thousands | 11,900 | 800 | 800 | 800 | 17,400 | 34,500 | 37,000 | 6,800 | 13,000 | 800 | 800 | 7,300 | 67,400 | 800 | 800 | 12,400 | 12,400 | 12,400 | 12,400 | 9,900 |
| Total current liabilities | US$ in thousands | 1,752,100 | 1,659,200 | 1,394,000 | 1,438,600 | 1,489,900 | 1,379,300 | 1,347,700 | 1,328,200 | 1,442,200 | 1,256,300 | 1,251,300 | 1,129,000 | 1,079,200 | 949,600 | 1,054,600 | 1,286,200 | 944,400 | 904,000 | 1,015,700 | 1,205,700 |
| Cash ratio | 0.27 | 0.20 | 0.34 | 0.27 | 0.41 | 0.36 | 0.45 | 0.52 | 0.25 | 1.18 | 0.47 | 0.42 | 0.54 | 0.69 | 0.51 | 0.40 | 0.35 | 0.42 | 0.66 | 0.14 |
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 measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Looking at Brunswick Corp.'s cash ratio over the past eight quarters, we can see some fluctuations. In Q1 2022, the company had a relatively high cash ratio of 0.58, indicating a robust liquidity position. However, in subsequent quarters, the cash ratio gradually decreased, reaching its lowest point of 0.25 in Q3 2023.
The most recent cash ratio of 0.30 in Q4 2023 shows a slight improvement from the previous quarter but is still lower than the levels seen in earlier periods. This suggests that while Brunswick Corp. has enough cash to cover a portion of its short-term liabilities, there may be room for improvement in bolstering its liquidity position.
Overall, the trend in Brunswick Corp.'s cash ratio indicates a fluctuating liquidity position over the past year, highlighting the importance of closely monitoring cash management strategies to ensure the company can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023