Chemours Co (CC)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.68 | 1.54 | 1.70 | 1.80 | 1.83 |
| Quick ratio | 0.40 | 0.48 | 0.58 | 0.78 | 0.77 |
| Cash ratio | 0.40 | 0.48 | 0.58 | 0.78 | 0.77 |
The current ratio for Chemours Co has shown a slight decrease from 1.83 in December 2020 to 1.68 in December 2024. This indicates that the company may be facing some challenges in meeting its short-term obligations with its current assets.
Similarly, the quick ratio has also declined from 0.77 in December 2020 to 0.40 in December 2024, suggesting that Chemours Co may have difficulty meeting its immediate liabilities using its most liquid assets.
The cash ratio, which measures the company's ability to cover current liabilities with its cash and cash equivalents, has followed a similar downward trend from 0.77 in December 2020 to 0.40 in December 2024, indicating potential liquidity constraints.
Overall, the decreasing trends in all three liquidity ratios suggest that Chemours Co may need to carefully manage its cash flow and current asset levels to ensure it can meet its short-term financial obligations effectively.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 116.02 | 104.53 | 98.97 | 80.81 | 87.84 |
The cash conversion cycle for Chemours Co has shown fluctuations over the years based on the provided data.
- In December 2020, the cash conversion cycle was 87.84 days, indicating that on average, it took the company nearly 88 days to convert its investments in inventory and accounts receivable into cash flows from sales.
- By December 2021, the cycle improved to 80.81 days, suggesting a more efficient management of operating cycle components.
- However, the trend reversed in December 2022 with an increase to 98.97 days, indicating a longer period for the company to convert its resources into cash.
- This trend continued in December 2023 as the cycle extended to 104.53 days, potentially indicating challenges in managing working capital effectively.
- By December 2024, the cash conversion cycle further increased to 116.02 days, reflecting an even longer time taken by the company to convert its investments into cash.
Overall, the fluctuations in the cash conversion cycle highlight the importance of efficient working capital management for Chemours Co to optimize its cash flows and strengthen its financial position.