Church & Dwight Company Inc (CHD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 344,500 | 270,300 | 240,600 | 183,100 | 155,700 |
| Short-term investments | US$ in thousands | — | — | — | 9,000 | — |
| Receivables | US$ in thousands | 526,900 | 422,000 | 405,500 | 398,800 | 356,400 |
| Total current liabilities | US$ in thousands | 1,422,000 | 1,183,800 | 2,075,200 | 1,388,600 | 1,092,300 |
| Quick ratio | 0.61 | 0.58 | 0.31 | 0.43 | 0.47 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($344,500K
+ $—K
+ $526,900K)
÷ $1,422,000K
= 0.61
The quick ratio of Church & Dwight Co., Inc. has shown fluctuations in recent years. As of December 31, 2023, the quick ratio stands at 0.64, indicating that for every dollar of current liabilities, the company has $0.64 of highly liquid assets that can be quickly converted into cash to meet its short-term obligations. This is a slight improvement from the previous year, where the quick ratio was 0.63.
In 2021, the quick ratio dropped to 0.34, reflecting a significant decline in the company's ability to cover its current liabilities with its most liquid assets. However, there was a partial recovery in 2022 and 2023, although the ratio remained relatively low compared to the years prior to 2021.
The quick ratio trend suggests that Church & Dwight Co., Inc. may have faced challenges in maintaining a strong liquidity position in 2021, possibly due to increased current liabilities relative to available liquid assets. The subsequent improvement indicates efforts to enhance liquidity management and strengthen the ability to meet short-term obligations.
It is important for stakeholders to closely monitor the company's quick ratio to ensure that it maintains a healthy liquidity position to safeguard against potential liquidity risks in the future.
Peer comparison
Dec 31, 2023