Crown Holdings Inc (CCK)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,719,000 | 1,751,000 | 1,897,000 | 1,957,000 | 1,843,000 | 2,124,000 | 2,151,000 | 2,170,000 | 1,889,000 | 1,840,000 | 1,766,000 | 1,868,000 | 1,522,000 | 1,821,000 | 1,604,000 | 1,554,000 | 1,528,000 | 1,795,000 | 1,830,000 | 1,686,000 |
| 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 |
| Quick ratio | 0.72 | 0.65 | 0.69 | 0.66 | 0.61 | 0.62 | 0.48 | 0.50 | 0.59 | 0.74 | 0.52 | 0.65 | 0.63 | 0.67 | 0.57 | 0.72 | 0.55 | 0.59 | 0.60 | 0.59 |
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
Crown Holdings, Inc.'s quick ratio has fluctuated over the past eight quarters, ranging from 0.54 to 0.77. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory. A higher quick ratio is generally seen as favorable as it suggests the company has enough liquid assets to cover its current liabilities.
Looking at the trend, the quick ratio has shown improvement over the past two quarters, increasing from 0.69 to 0.77 in Q4 2023. This indicates a stronger ability to meet short-term obligations without relying heavily on inventory. However, the ratio dipped to 0.54 in Q2 2022, which may have raised concerns about the company's liquidity position during that period.
Overall, despite the fluctuations, the quick ratio for Crown Holdings, Inc. has generally been above 0.5, suggesting a reasonable ability to cover short-term liabilities with liquid assets. Further analysis of other liquidity ratios and factors impacting the company's financial position would provide a more comprehensive view of its liquidity management.
Peer comparison
Dec 31, 2023