Chemours Co (CC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,203,000 | 1,102,000 | 1,451,000 | 1,105,000 | 943,000 |
| Short-term investments | US$ in thousands | — | — | — | 167 | — |
| Receivables | US$ in thousands | 610,000 | 626,000 | 720,000 | 511,000 | 674,000 |
| Total current liabilities | US$ in thousands | 2,486,000 | 1,891,000 | 1,858,000 | 1,442,000 | 1,541,000 |
| Quick ratio | 0.73 | 0.91 | 1.17 | 1.12 | 1.05 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,203,000K
+ $—K
+ $610,000K)
÷ $2,486,000K
= 0.73
The quick ratio of Chemours Co has shown a declining trend over the past five years. The ratio decreased from 1.05 in 2019 to 0.73 in 2023. This indicates a potential weakening in the company's ability to meet its short-term obligations using its most liquid assets.
A quick ratio below 1 suggests that the company may have difficulty covering its current liabilities with its most liquid assets alone. The decreasing trend observed may raise concerns about the company's liquidity position and ability to weather short-term financial challenges. It may be prudent for stakeholders to closely monitor the company's liquidity management and assess any potential risks associated with its current financial position.
Peer comparison
Dec 31, 2023