CF Industries Holdings Inc (CF)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,614,000 | 1,877,000 | 1,819,000 | 1,773,000 | 2,032,000 | 3,254,000 | 3,219,000 | 2,825,000 | 2,323,000 | 2,192,000 | 2,370,000 | 2,617,000 | 1,628,000 | 757,000 | 777,000 | 804,000 | 683,000 | 553,000 | 563,000 | 753,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 374,000 | 244,000 | 294,000 | 268,000 | 222,000 | 218,000 | 86,000 | 55,000 | 92,000 | 82,000 | 91,000 | 80,000 | 86,000 | — | — |
| Total current liabilities | US$ in thousands | 818,000 | 1,013,000 | 596,000 | 690,000 | 800,000 | 926,000 | 622,000 | 862,000 | 995,000 | 1,381,000 | 1,097,000 | 2,228,000 | 1,432,000 | 1,015,000 | 643,000 | 891,000 | 906,000 | 681,000 | 615,000 | 1,235,000 |
| Cash ratio | 1.97 | 1.85 | 3.05 | 2.57 | 2.54 | 3.92 | 5.57 | 3.62 | 2.60 | 1.75 | 2.36 | 1.21 | 1.18 | 0.84 | 1.34 | 1.00 | 0.84 | 0.94 | 0.92 | 0.61 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,614,000K
+ $—K)
÷ $818,000K
= 1.97
The cash ratio of CF Industries Holdings Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio measures a company's ability to cover its short-term obligations using only its cash and cash equivalents.
At the beginning of the period on March 31, 2020, the cash ratio stood at 0.61, indicating that CF Industries may have had difficulty meeting its short-term obligations with its cash resources alone. However, this ratio increased gradually over the next few quarters, reaching 1.00 on March 31, 2021, and further improving to 5.57 by June 30, 2023.
The notable peak in the cash ratio on June 30, 2023, suggests that CF Industries had a significant amount of cash and cash equivalents relative to its short-term liabilities at that time. This could indicate that the company was effectively managing its liquidity and had the ability to meet its financial obligations comfortably.
Subsequently, the cash ratio decreased to 1.97 on December 31, 2024. While still above 1, indicating CF Industries has more than enough cash to cover its short-term liabilities, the slight decrease from the previous quarter suggests a potential decrease in liquidity compared to the peak in June 2023.
Overall, the trend in CF Industries' cash ratio reflects fluctuations in the company's ability to cover short-term obligations with cash on hand. Investors and analysts should continue to monitor the cash ratio to assess the company's liquidity position and its ability to meet financial obligations in the short term.
Peer comparison
Dec 31, 2024