Clearwater Paper Corporation (CLW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 42,000 | 53,700 | 25,200 | 35,900 | 20,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 286,000 | 312,000 | 254,100 | 244,800 | 280,400 |
| Cash ratio | 0.15 | 0.17 | 0.10 | 0.15 | 0.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($42,000K
+ $—K)
÷ $286,000K
= 0.15
The cash ratio of Clearwater Paper Corp has shown fluctuating trends over the past five years, ranging from 0.08 in 2019 to 0.24 in 2022. The cash ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In 2023, the cash ratio decreased to 0.21 from 0.24 in 2022, which may suggest a slight reduction in the company's liquidity position or its ability to meet immediate financial obligations solely through cash reserves. However, the current ratio of 0.21 still indicates that Clearwater Paper Corp has a sufficient level of cash to cover its short-term liabilities, though it has slightly decreased from the previous year.
When compared to the industry average or its competitors, further analysis is necessary to determine Clearwater Paper Corp's performance relative to its peers in terms of liquidity. Additionally, management should monitor the cash ratio closely to ensure liquidity remains at an optimal level to meet any upcoming financial challenges.