Chemours Co (CC)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Current ratio 1.68 1.73 1.89 1.61 1.54 1.68 1.54 1.83 1.70 1.82 1.91 1.91 1.80 1.89 1.82 1.86 1.83 1.99 2.35 1.93
Quick ratio 0.40 0.36 0.40 0.33 0.73 0.39 0.34 0.47 0.58 0.60 0.66 0.65 0.78 0.58 0.79 0.67 0.77 0.73 0.89 0.53
Cash ratio 0.40 0.36 0.40 0.33 0.73 0.39 0.34 0.47 0.58 0.60 0.66 0.65 0.78 0.58 0.79 0.67 0.77 0.73 0.89 0.53

The Current Ratio of Chemours Co has exhibited fluctuations over the past few years, ranging from a low of 1.54 to a high of 2.35. Although the ratio peaked at 2.35 in June 2020, indicating a strong ability to cover short-term obligations, it has generally trended downwards since then. As of December 2024, the Current Ratio stood at 1.68, suggesting a slight decline in the company's liquidity position.

On the other hand, the Quick Ratio of Chemours Co has also shown variability, with values ranging from 0.33 to 0.89. This ratio reflects the company's ability to meet its short-term liabilities with its most liquid assets. While there have been fluctuations in the Quick Ratio over the period under review, it has generally remained below 1, indicating some reliance on inventory or other less liquid assets to cover short-term obligations.

The Cash Ratio, which provides insight into the company's ability to cover short-term liabilities with cash and cash equivalents, has shown a similar pattern to the Quick Ratio. With values ranging from 0.33 to 0.89, the Cash Ratio has generally remained below 1, indicating that Chemours Co may need to rely on sources other than cash to meet its short-term obligations.

Overall, the liquidity ratios of Chemours Co suggest that while the company has maintained a moderate level of liquidity over the years, there has been some variability in its ability to cover short-term obligations with its current assets and cash equivalents. Investors and stakeholders may want to closely monitor these ratios to assess the company's liquidity position and ability to meet its financial obligations in the future.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash conversion cycle days 116.02 113.44 108.12 109.90 104.46 101.12 108.11 107.04 98.99 92.32 86.72 83.38 80.79 77.13 84.26 89.40 87.84 88.83 93.34 92.60

The cash conversion cycle of Chemours Co has shown fluctuations over the periods analyzed. From March 31, 2020, to December 31, 2024, the company's cash conversion cycle ranged from 77.13 days to 116.02 days.

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally preferable as it indicates that the company is able to efficiently manage its working capital.

In the case of Chemours Co, the trend in the cash conversion cycle has been fluctuating, with some periods showing improvements in efficiency (such as September 30, 2021, with 77.13 days) and other periods showing a lengthening of the cycle (such as December 31, 2024, with 116.02 days).

It is important for the company to closely monitor and manage its cash conversion cycle to ensure optimal use of its resources and liquidity. Analyzing the factors contributing to the fluctuations in the cycle can provide insights into the company's operational efficiency and working capital management.