Crown Holdings Inc (CCK)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,310,000 | 807,000 | 547,000 | 403,000 | 550,000 | 368,000 | 438,000 | 389,000 | 531,000 | 2,261,000 | 566,000 | 588,000 | 1,173,000 | 613,000 | 366,000 | 765,000 | 607,000 | 339,000 | 342,000 | 301,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,201,000 | 3,957,000 | 3,554,000 | 3,576,000 | 3,932,000 | 4,010,000 | 5,356,000 | 5,106,000 | 4,133,000 | 5,535,000 | 4,514,000 | 3,756,000 | 4,282,000 | 3,624,000 | 3,447,000 | 3,238,000 | 3,899,000 | 3,632,000 | 3,608,000 | 3,342,000 |
| Cash ratio | 0.31 | 0.20 | 0.15 | 0.11 | 0.14 | 0.09 | 0.08 | 0.08 | 0.13 | 0.41 | 0.13 | 0.16 | 0.27 | 0.17 | 0.11 | 0.24 | 0.16 | 0.09 | 0.09 | 0.09 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,310,000K
+ $—K)
÷ $4,201,000K
= 0.31
The cash ratio of Crown Holdings, Inc. has shown a fluctuating trend over the past eight quarters. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has increased from 0.14 in Q2 2022 to 0.36 in Q4 2023. This indicates an improvement in the company's liquidity position as it now has more cash on hand to meet its short-term obligations.
However, it is important to note that the cash ratio has not been consistently increasing and has experienced some variability throughout the quarters. For example, the ratio decreased from 0.26 in Q3 2023 to 0.23 in Q2 2023 before increasing again in Q4 2023. This fluctuation may suggest that the company's cash management practices or operating cash flows are not entirely stable.
Overall, while the recent increase in the cash ratio is a positive sign for Crown Holdings, Inc.'s liquidity position, it is essential for the company to maintain a consistent and adequate level of cash reserves to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023