Corteva Inc (CTVA)

Liquidity ratios

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
Current ratio 1.56 1.58 1.66 1.39 1.56 1.69 1.88 1.64 1.63 1.81 1.97 1.67 1.73 1.82 1.92 1.60 1.64 1.57 1.68 1.71
Quick ratio 0.79 0.86 1.02 0.79 0.84 0.96 1.22 0.99 0.98 1.11 1.34 1.03 1.02 1.11 1.28 0.95 0.89 0.96 1.10 0.59
Cash ratio 0.26 0.23 0.25 0.13 0.31 0.26 0.34 0.24 0.48 0.37 0.40 0.28 0.44 0.38 0.38 0.21 0.21 0.23 0.24 0.13

The liquidity ratios of Corteva Inc indicate the company's ability to meet its short-term obligations and manage its current assets effectively.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been relatively stable over the past eight quarters, ranging from 1.39 to 1.66. A ratio above 1 indicates that Corteva has more current assets than current liabilities, with higher values suggesting better short-term financial health.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventories from current assets. Corteva's quick ratio has varied between 0.89 and 1.35 over the same period, reflecting some fluctuations in the company's ability to meet its short-term obligations without relying on inventory sales. A quick ratio above 1 is generally considered healthy, as it suggests that the company can cover its short-term liabilities with its most liquid assets.

The cash ratio measures the company's ability to cover its current liabilities with cash and cash equivalents alone. Corteva's cash ratio has ranged from 0.23 to 0.46, indicating some variability in its liquidity position over the past eight quarters. A higher cash ratio is typically seen as more favorable, as it suggests a greater capacity to pay off immediate obligations with cash reserves.

Overall, Corteva Inc's liquidity ratios suggest that the company has maintained a generally satisfactory ability to meet its short-term financial obligations and manage its current assets efficiently, although some fluctuations in liquidity levels have been observed. Monitoring these ratios over time can help assess the company's short-term financial health and its ability to weather potential liquidity challenges.

Additional liquidity measure

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
Cash conversion cycle days 185.35 207.80 223.56 245.50 168.08 166.86 168.15 200.45 141.42 165.47 181.36 210.00 166.42 190.63 198.06 215.15 180.65

The cash conversion cycle of Corteva Inc has shown fluctuation over the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased to 212.65 days from 234.32 days in Q3 2023. This reduction indicates an improvement in the efficiency of Corteva's working capital management. However, compared to the previous quarters, the cash conversion cycle was higher in Q1 2023 and Q2 2023, reaching 270.07 days and 245.35 days, respectively.

Looking further back, the cash conversion cycle was relatively lower in Q4 2022 at 186.23 days, compared to the recent quarters. The decreasing trend continued from Q4 2022 to Q3 2022, as the cash conversion cycle improved to 179.64 days. However, there was a slight increase in Q2 2022 to 174.70 days, before rising significantly in Q1 2022 to 215.02 days.

Overall, it is important for Corteva Inc to closely monitor and manage its cash conversion cycle to ensure efficient utilization of its working capital and optimize its operations. The recent decrease in the cash conversion cycle in Q4 2023 is a positive sign, but the company should strive to maintain a lower cycle duration consistently across quarters for sustained financial health and performance.