Berry Global Group Inc (BERY)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,095,000 | 1,203,000 | 1,410,000 | 1,091,000 | 750,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,672,000 | 2,713,000 | 2,844,000 | 3,186,000 | 2,183,000 |
| Cash ratio | 0.30 | 0.44 | 0.50 | 0.34 | 0.34 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,095,000K
+ $—K)
÷ $3,672,000K
= 0.30
The cash ratio of Berry Global Group Inc has shown fluctuating trends over the past five years. The ratio indicates the company's ability to cover its short-term liabilities with its readily available cash and equivalents.
The cash ratio decreased from 0.50 in 2022 to 0.34 in both 2021 and 2020 before increasing slightly to 0.44 in 2023. In 2024, the ratio further declined to 0.30. This downward trend suggests a decreased ability to cover short-term obligations solely with cash on hand.
A cash ratio of less than 1 indicates that Berry Global Group Inc may have insufficient cash to meet its short-term liabilities. A consistently low cash ratio could signal liquidity challenges or inefficiencies in managing working capital. It is essential for the company to carefully monitor its cash position to ensure it can meet its financial obligations in a timely manner.
Peer comparison
Sep 30, 2024