Corteva Inc (CTVA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,106,000 | 2,644,000 | 3,191,000 | 4,459,000 | 3,526,000 |
| Short-term investments | US$ in thousands | 63,000 | 98,000 | 124,000 | 86,000 | 269,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 10,386,000 | 10,409,000 | 10,744,000 | 9,558,000 | 8,548,000 |
| Quick ratio | 0.31 | 0.26 | 0.31 | 0.48 | 0.44 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,106,000K
+ $63,000K
+ $—K)
÷ $10,386,000K
= 0.31
The quick ratio, also known as the acid-test ratio, reflects Corteva Inc's ability to meet its short-term obligations with its most liquid assets. Looking at the data provided, we see a trend of the quick ratio fluctuating over the years.
As of December 31, 2020, the quick ratio was recorded at 0.44, indicating that for every dollar of current liabilities, Corteva had $0.44 of quick assets available to cover those obligations. The ratio improved slightly to 0.48 on December 31, 2021, suggesting a better liquidity position compared to the previous year.
However, the quick ratio declined significantly to 0.31 as of December 31, 2022, and further dropped to 0.26 by December 31, 2023. These decreases may indicate potential liquidity challenges in meeting short-term obligations using only quick assets.
There was a slight uptick in the quick ratio to 0.31 by December 31, 2024, but it still remained lower than the ratios in 2020 and 2021. This pattern suggests that Corteva may be experiencing fluctuations in its liquidity position and may need to closely monitor its ability to cover short-term liabilities with available quick assets.
In conclusion, while the quick ratio provides insights into Corteva Inc's short-term liquidity, the fluctuations observed over the years highlight the importance of closely monitoring changes in the company's ability to meet its immediate financial obligations.
Peer comparison
Dec 31, 2024