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 Sep 30, 2019 Jun 30, 2019 Mar 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 1,980,000 2,077,000 1,759,000
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 5,000 117,000 6,000 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 6,574,000 7,434,000 6,507,000
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 8,993,000 8,614,000 14,078,000
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 0.96 1.10 0.59

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

Company name
Symbol
Quick ratio
Corteva Inc
CTVA
0.79
Fresh Del Monte Produce Inc
FDP
1.04