Colgate-Palmolive Company (CL)

Cash 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 and cash equivalents	US$ in thousands	966,000	951,000	819,000	867,000	775,000	938,000	858,000	877,000	832,000	958,000	937,000	995,000	888,000	989,000	997,000	854,000	883,000	948,000	863,000	843,000
Short-term investments	US$ in thousands	179,000	247,000	267,000	7,764,000	175,000	208,000	120,000	58,000	34,000	100,000	70,000	62,000	37,000	—	—	—	23,000	109,000	66,000	37,000
Total current liabilities	US$ in thousands	4,741,000	4,602,000	4,632,000	4,441,000	4,004,000	4,492,000	4,395,000	4,566,000	4,051,000	4,281,000	4,203,000	4,539,000	4,404,000	4,481,000	4,580,000	4,443,000	4,038,000	4,231,000	3,782,000	3,865,000
Cash ratio		0.24	0.26	0.23	1.94	0.24	0.26	0.22	0.20	0.21	0.25	0.24	0.23	0.21	0.22	0.22	0.19	0.22	0.25	0.25	0.23

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($966,000K + $179,000K) ÷ $4,741,000K
= 0.24

The cash ratio of Colgate-Palmolive Co. has shown consistency over the past eight quarters, ranging between 0.34 and 0.40. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio typically suggests a stronger ability to meet short-term obligations. Colgate-Palmolive Co. has maintained a relatively stable cash ratio, which implies a prudent approach to managing liquidity and financial health. However, it is essential to consider this ratio in conjunction with other liquidity ratios to gain a more comprehensive understanding of the company's overall financial position.