Dupont De Nemours Inc (DD)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.33 | 2.43 | 2.94 | 1.89 | 2.31 |
| Quick ratio | 0.39 | 0.77 | 1.29 | 0.47 | 0.77 |
| Cash ratio | 0.39 | 0.77 | 1.29 | 0.47 | 0.77 |
Dupont De Nemours Inc's current ratio has shown fluctuations over the years, starting at 2.31 in 2020, decreasing to 1.89 in 2021, increasing significantly to 2.94 in 2022, then declining to 2.43 in 2023, and dropping notably to 1.33 in 2024. This indicates a mixed performance in terms of short-term solvency and the ability to cover its current liabilities with its current assets.
The quick ratio, a more stringent measure of liquidity than the current ratio, has also displayed variability. It was at 0.77 in 2020, decreased to 0.47 in 2021, rose to 1.29 in 2022, dropped to 0.77 in 2023, and decreased further to 0.39 in 2024. These figures suggest that Dupont De Nemours Inc may have had challenges in meeting its short-term obligations without relying on inventory.
Lastly, the cash ratio, which measures the ability to cover short-term liabilities with cash and cash equivalents, has followed a similar pattern to the quick ratio. With a consistent trend of decline from 0.77 in 2020 to 0.39 in 2024, it indicates that the company may have had a reduced capacity to pay off its current liabilities with its cash reserves alone.
In conclusion, the liquidity ratios of Dupont De Nemours Inc have experienced fluctuations, indicating variations in its ability to meet short-term financial obligations and manage liquidity efficiently over the years.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 98.67 | 100.02 | 101.18 | 131.05 | 100.58 |
Based on the provided data, Dupont De Nemours Inc's cash conversion cycle has fluctuated over the past five years, from 100.58 days in December 2020 to 98.67 days in December 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In December 2021, the cash conversion cycle increased to 131.05 days, indicating a potential delay in the company's cash inflows relative to its outflows. However, the following years showed improvements in managing this cycle, with values of 101.18 days in December 2022 and 100.02 days in December 2023.
Overall, the trend suggests that Dupont De Nemours Inc has been working towards optimizing its operations to reduce the time taken to convert investments into cash, as evidenced by the decreasing values in 2023 and 2024. Lowering the cash conversion cycle can indicate improved efficiency in managing inventory, receivables, and payables, ultimately enhancing the company's liquidity and financial health.