CF Industries Holdings Inc (CF)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,032,000 | 2,323,000 | 1,628,000 | 683,000 | 287,000 |
| Short-term investments | US$ in thousands | — | 268,000 | 55,000 | 80,000 | 17,000 |
| Total current liabilities | US$ in thousands | 800,000 | 995,000 | 1,432,000 | 906,000 | 665,000 |
| Cash ratio | 2.54 | 2.60 | 1.18 | 0.84 | 0.46 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,032,000K
+ $—K)
÷ $800,000K
= 2.54
CF Industries Holdings Inc's cash ratio has shown a consistent upward trend over the past five years, indicating an improving liquidity position. The ratio increased from 0.57 in 2019 to 2.81 in 2023, reflecting a significant enhancement in the company's ability to cover its short-term liabilities with cash and cash equivalents.
This suggests that CF Industries Holdings Inc has ample liquid resources to meet its immediate obligations without relying heavily on other current assets or external financing sources. The steady increase in the cash ratio demonstrates the company's prudent cash management and sound financial health over the years, positioning it well to weather unforeseen financial challenges.
Peer comparison
Dec 31, 2023