Corteva Inc (CTVA)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.45 1.50 1.72 1.51 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
Quick ratio 0.31 0.24 0.22 0.15 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
Cash ratio 0.31 0.24 0.22 0.15 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

Corteva Inc's liquidity ratios provide insight into the company's ability to meet short-term obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has fluctuated over the years but generally remained above 1, indicating that Corteva has had sufficient current assets to cover its current liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, shows a trend of improvement over time, indicating that Corteva has increased its ability to meet short-term obligations without relying on selling inventory. This suggests an enhancement in the company's overall liquidity position.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents alone, shows a similar trend to the quick ratio. Corteva has shown a steady increase in its cash ratio, signaling a stronger ability to meet short-term obligations using readily available cash resources.

Overall, Corteva Inc's liquidity ratios demonstrate a generally healthy liquidity position, with improvements in the quick ratio and cash ratio indicating enhanced short-term financial strength and the ability to weather potential liquidity challenges effectively. Additionally, the current ratio consistently above 1 provides further assurance of Corteva's ability to meet its current obligations.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 201.74 213.55 182.63 229.91 253.84 229.21 199.50 229.28 238.22 194.57 155.25 191.08 205.07 177.17 146.22 182.16 209.47 190.90 155.67 186.07

The cash conversion cycle of Corteva Inc has shown fluctuations over the periods from March 31, 2020, to December 31, 2024. The cash conversion cycle is a measure of how long a company takes to convert its investments in inventory into cash flows from sales.

The cycle started at 186.07 days on March 31, 2020, decreased to 146.22 days by June 30, 2021, and then increased again to 253.84 days by December 31, 2023, showing significant volatility. This indicates that there were changes in the company's efficiency in converting its resources into cash during different periods.

Overall, the trend demonstrates that Corteva was able to manage its cash conversion cycle effectively in some quarters, but faced challenges in others. The company may have experienced fluctuations in inventory management, accounts receivable collection, or accounts payable timing, all of which impact the cash conversion cycle.

It would be essential for Corteva Inc to further analyze the factors influencing these fluctuations in the cash conversion cycle to optimize its working capital management and overall financial performance.