Chemours Co (CC)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 713,000 1,203,000 1,102,000 1,451,000 1,105,000
Short-term investments US$ in thousands — — — — 167
Total current liabilities US$ in thousands 1,803,000 2,486,000 1,891,000 1,858,000 1,442,000
Cash ratio 0.40 0.48 0.58 0.78 0.77

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($713,000K + $—K) ÷ $1,803,000K
= 0.40

The cash ratio of Chemours Co, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has shown a slight fluctuation over the years. Starting at 0.77 on December 31, 2020, the ratio increased marginally to 0.78 on December 31, 2021. However, there was a notable decrease in the cash ratio to 0.58 on December 31, 2022, indicating a decline in the company's ability to cover its short-term obligations with its available cash.

The downward trend continued in the subsequent years with the cash ratio falling to 0.48 on December 31, 2023, and further dropping to 0.40 on December 31, 2024. These declining values suggest that Chemours Co may be facing challenges in maintaining sufficient liquid assets to meet its short-term debt obligations.

It is important for investors and stakeholders to closely monitor the cash ratio, as a decreasing trend could indicate potential liquidity issues for the company. Further analysis of the company's cash management practices and overall financial health may be necessary to address any underlying concerns.