Crown Holdings Inc (CCK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,310,000 | 550,000 | 531,000 | 1,173,000 | 607,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,719,000 | 1,843,000 | 1,889,000 | 1,522,000 | 1,528,000 |
| Total current liabilities | US$ in thousands | 4,201,000 | 3,932,000 | 4,133,000 | 4,282,000 | 3,899,000 |
| Quick ratio | 0.72 | 0.61 | 0.59 | 0.63 | 0.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,310,000K
+ $—K
+ $1,719,000K)
÷ $4,201,000K
= 0.72
The quick ratio of Crown Holdings, Inc. over the past five years has shown some fluctuations. In 2023, the quick ratio improved to 0.77 from 0.67 in 2022, indicating a stronger ability to cover its short-term liabilities with its most liquid assets. This suggests that the company may have a better capacity to meet its immediate financial obligations without relying heavily on inventory sales.
Comparing this to previous years, the quick ratio has generally been below 1, indicating that Crown Holdings may have faced challenges in meeting its short-term obligations using only its quick assets. The increase in the quick ratio from 2022 to 2023 is a positive sign, potentially reflecting better liquidity management or increased cash reserves. However, it would be beneficial for the company to continue monitoring and improving its quick ratio to ensure financial stability and flexibility in the future.
Peer comparison
Dec 31, 2023