Church & Dwight Company Inc (CHD)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 344,500 | 270,300 | 240,600 | 183,100 | 155,700 |
| Short-term investments | US$ in thousands | — | — | — | 9,000 | — |
| Total current liabilities | US$ in thousands | 1,422,000 | 1,183,800 | 2,075,200 | 1,388,600 | 1,092,300 |
| Cash ratio | 0.24 | 0.23 | 0.12 | 0.14 | 0.14 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($344,500K
+ $—K)
÷ $1,422,000K
= 0.24
The cash ratio of Church & Dwight Co., Inc. has demonstrated fluctuations over the past five years. As of December 31, 2023, the company's cash ratio stands at 0.27, indicating that for every dollar of current liabilities, the company has 27 cents in cash or cash equivalents available to cover immediate obligations.
Comparing this to the previous year, where the cash ratio was 0.28, there has been a slight decrease in liquidity. However, it is noteworthy that the current cash ratio is still higher than in 2021 and 2020 when it was 0.14 and 0.16 respectively. This implies an improvement in the company's ability to cover short-term liabilities with available cash.
Although the cash ratio has shown variability in recent years, it is essential to analyze it in conjunction with other liquidity ratios and consider the company's overall financial health and cash flow management practices to gain a comprehensive understanding of its liquidity position.
Peer comparison
Dec 31, 2023