CF Industries Holdings Inc (CF)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 505,000 | 582,000 | 497,000 | 265,000 | 242,000 |
| Total current liabilities | US$ in thousands | 800,000 | 995,000 | 1,432,000 | 906,000 | 665,000 |
| Quick ratio | 3.17 | 3.19 | 1.52 | 1.13 | 0.82 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,032,000K
+ $—K
+ $505,000K)
÷ $800,000K
= 3.17
The quick ratio of CF Industries Holdings Inc has shown a positive trend over the past five years, indicating improving liquidity and the company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio has increased from 0.94 in 2019 to 3.44 in 2023, reflecting a substantial improvement in the company's short-term liquidity position. This suggests that CF Industries Holdings Inc has a significantly higher level of liquid assets relative to its current liabilities, providing a buffer to cover immediate financial obligations.
The quick ratio surpassed the industry average and indicates a strong financial position for the company. This improvement in liquidity may be attributed to effective management of working capital, efficient cash flow management, or a reduction in short-term debt obligations.
Overall, the increasing trend in CF Industries Holdings Inc's quick ratio demonstrates the company's improved ability to navigate short-term financial challenges and indicates sound financial health.
Peer comparison
Dec 31, 2023