Corteva Inc (CTVA)
Cash ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 2,644,000 | 3,191,000 | 4,459,000 | 3,526,000 | 1,764,000 |
Short-term investments | US$ in thousands | 98,000 | 124,000 | 86,000 | 269,000 | 5,000 |
Total current liabilities | US$ in thousands | 10,409,000 | 10,744,000 | 9,558,000 | 8,548,000 | 8,238,000 |
Cash ratio | 0.26 | 0.31 | 0.48 | 0.44 | 0.21 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,644,000K
+ $98,000K)
÷ $10,409,000K
= 0.26
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. In the case of Corteva Inc, the cash ratio has shown some fluctuation over the past five years.
In 2023, the cash ratio stands at 0.37, indicating that for every dollar of current liabilities, Corteva Inc has $0.37 in cash and cash equivalents available. This suggests a slight decrease from the previous year, where the ratio was 0.40.
Comparing to 2021 where the cash ratio was 0.58, there has been a noticeable decline in liquidity. The ratio was also 0.58 in 2020, indicating that the company maintained a consistent level of liquidity in the immediate past prior to the recent decrease.
In 2019, the cash ratio was 0.36, indicating a lower level of liquidity compared to the more recent years.
Overall, the trend in Corteva Inc's cash ratio shows some variability, but it is important for the company to monitor and manage its liquidity position effectively to ensure it can meet its short-term obligations as they come due.
Peer comparison
Dec 31, 2023