Church & Dwight Company Inc (CHD)

Quick ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash US$ in thousands 344,500 573,300 396,900 202,800 270,300 437,600 639,700 174,400 240,600 180,000 149,800 127,500 183,100 549,100 451,700 1,046,600 155,700 114,700 97,900 97,900
Short-term investments US$ in thousands -768,700 9,000 9,000 9 9,000 9
Receivables US$ in thousands 526,900 460,900 460,900 429,300 422,000 391,300 405,800 407,100 405,500 407,000 386,200 405,800 398,800 372,800 344,500 353,500 356,400 384,400 383,700 384,600
Total current liabilities US$ in thousands 1,422,000 1,188,400 1,121,800 1,126,900 1,183,800 1,450,600 1,726,800 1,871,600 2,075,200 1,584,400 1,376,100 1,274,300 1,388,600 971,900 996,600 1,769,000 1,092,300 1,142,100 1,184,700 1,133,300
Quick ratio 0.61 0.87 0.08 0.56 0.58 0.57 0.61 0.31 0.31 0.38 0.40 0.42 0.43 0.95 0.80 0.79 0.47 0.44 0.41 0.43

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. It is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by current liabilities.

Looking at the quick ratio of Church & Dwight Co., Inc. over the past eight quarters, we observe fluctuations in the company's ability to cover its short-term liabilities with its liquid assets. In Q4 2023, the quick ratio stood at 0.64, which indicates that for every dollar of current liabilities, the company had $0.64 in quick assets available to meet those obligations.

Comparing this to the previous quarter, the quick ratio decreased from 0.90 to 0.64 in Q4 2023. This decline suggests a potential weakening in the company's short-term liquidity position. However, when assessing a single quarter's performance, it is important to consider the company's historical trends.

Examining the trend over the past eight quarters, we notice that the quick ratio has been relatively volatile, ranging from a low of 0.33 in Q1 2022 to a high of 0.90 in Q3 2023. This variability indicates fluctuations in the company's ability to turn its current assets into cash quickly to meet its short-term obligations.

Overall, while Church & Dwight Co., Inc. has shown some fluctuations in its quick ratio, it is essential to analyze other liquidity ratios and factors impacting the company's financial health to gain a more comprehensive understanding of its short-term liquidity position.


Peer comparison

Dec 31, 2023

Company name
Symbol
Quick ratio
Church & Dwight Company Inc
CHD
0.61
Ecolab Inc
ECL
0.91
Procter & Gamble Company
PG
0.46
Stepan Company
SCL
0.91