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