Berry Global Group Inc (BERY)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,203,000 | 1,410,000 | 1,091,000 | 750,000 | 750,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,713,000 | 2,844,000 | 3,186,000 | 2,183,000 | 2,039,000 |
| Cash ratio | 0.44 | 0.50 | 0.34 | 0.34 | 0.37 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,203,000K
+ $—K)
÷ $2,713,000K
= 0.44
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Berry Global Group Inc's cash ratio has shown fluctuation over the past five years. As of September 30, 2023, the company's cash ratio stood at 0.52, indicating that it had $0.52 of cash and cash equivalents for every $1 of current liabilities.
Comparing this to earlier years, we observe that the cash ratio was higher in October 2022 at 0.56, suggesting a relatively stronger liquidity position compared to the latest period. However, the cash ratio has demonstrated variability, with the lowest level recorded in October 2021 at 0.41 and a slight increase to 0.42 in September 2020.
This indicates that Berry Global Group Inc's liquidity position has fluctuated in recent years, and investors and creditors should assess the trend in conjunction with other financial indicators to gauge the company's overall financial health.
Peer comparison
Sep 30, 2023