Chemours Co (CC)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 1,203,000 1,102,000 1,451,000 1,105,000 943,000
Short-term investments US$ in thousands — — — 167 —
Total current liabilities US$ in thousands 2,486,000 1,891,000 1,858,000 1,442,000 1,541,000
Cash ratio 0.48 0.58 0.78 0.77 0.61

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,203,000K + $—K) ÷ $2,486,000K
= 0.48

The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

Over the past five years, Chemours Co's cash ratio has fluctuated:

- In 2023, the cash ratio decreased to 0.48 from 0.58 in 2022, possibly indicating a lower level of cash relative to short-term obligations.
- In 2022, the cash ratio decreased slightly from 0.78 in 2021, suggesting a dip in the company's liquidity.
- In 2021, there was a notable decrease in the cash ratio from 0.77 in 2020 to 0.78, although the ratio remained relatively strong.
- In 2020, the cash ratio was 0.77, indicating a stable liquidity position for the company.
- In 2019, the cash ratio was 0.61, showing a lower level of liquidity compared to the following years.

Overall, while Chemours Co's cash ratio has exhibited some fluctuation over the years, it has generally remained at levels indicating a reasonable ability to cover its short-term liabilities with its available cash reserves. Investors and analysts may continue to monitor this metric to assess the company's liquidity and financial health.