Corteva Inc (CTVA)
Quick ratio
| 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 | US$ in thousands | 2,644,000 | 2,254,000 | 2,563,000 | 1,646,000 | 3,191,000 | 2,199,000 | 2,401,000 | 2,031,000 | 4,459,000 | 2,779,000 | 2,861,000 | 2,404,000 | 3,526,000 | 2,768,000 | 2,809,000 | 1,963,000 | 1,764,000 |
| Short-term investments | US$ in thousands | 98,000 | 108,000 | 53,000 | 85,000 | 124,000 | 119,000 | 254,000 | 290,000 | 86,000 | 103,000 | 39,000 | 114,000 | 269,000 | 152,000 | 60,000 | 10,000 | 5,000 |
| Receivables | US$ in thousands | 5,488,000 | 6,581,000 | 7,955,000 | 8,678,000 | 5,701,000 | 6,273,000 | 6,947,000 | 7,275,000 | 4,811,000 | 5,818,000 | 6,792,000 | 6,792,000 | 4,926,000 | 5,627,000 | 6,772,000 | 6,775,000 | 5,528,000 |
| Total current liabilities | US$ in thousands | 10,409,000 | 10,348,000 | 10,346,000 | 13,231,000 | 10,744,000 | 8,918,000 | 7,856,000 | 9,653,000 | 9,558,000 | 7,805,000 | 7,252,000 | 8,999,000 | 8,548,000 | 7,734,000 | 7,529,000 | 9,199,000 | 8,238,000 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,644,000K
+ $98,000K
+ $5,488,000K)
÷ $10,409,000K
= 0.79
The quick ratio, also known as the acid-test ratio, measures Corteva Inc's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing the total quick assets (such as cash, marketable securities, and accounts receivable) by the total current liabilities.
Analyzing the quick ratio trend for Corteva Inc over the past eight quarters, we can observe fluctuations in the ratio. In Q4 2023, the quick ratio was 0.90, indicating that Corteva had $0.90 in quick assets for every $1 of current liabilities. This suggests a slight decline in liquidity compared to the previous quarter.
Looking at the broader trend, the quick ratio has fluctuated between 0.89 and 1.35 over the past two years. The ratio was strongest in Q2 2022 at 1.35, indicating Corteva's ability to cover its short-term obligations comfortably with its liquid assets. However, the ratio decreased to 0.89 in Q1 2023, signaling potential liquidity constraints during that period.
It is important to note that a quick ratio below 1 may indicate that Corteva may have difficulty meeting its short-term obligations without selling inventory or obtaining external financing. On the other hand, a quick ratio above 1 suggests that Corteva has more than enough quick assets to cover its current liabilities.
In conclusion, Corteva Inc's quick ratio has displayed variability over the examined periods, indicating fluctuations in liquidity. Further analysis of the company's cash management and working capital practices may provide insights into the reasons behind these fluctuations and potential areas for improvement.
Peer comparison
Dec 31, 2023