Chemours Co (CC)

Quick ratio

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

December 31, 2024 calculation

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

The quick ratio of Chemours Co has exhibited a declining trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 0.77 in 2020, the quick ratio slightly increased to 0.78 in 2021 before experiencing a notable decrease to 0.58 in 2022. Subsequently, the ratio further decreased to 0.48 in 2023 and 0.40 in 2024.

The decreasing trend suggests that the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory, has weakened over the years. A quick ratio below 1 indicates that Chemours Co may potentially face difficulties in covering its current liabilities with its readily available liquid assets.

It is essential for the company to monitor and manage its liquidity position effectively to ensure that it can meet its short-term financial obligations without relying too heavily on selling inventory. Further analysis of the company's assets and liabilities structure may provide additional insights into its overall financial health and operational efficiency.