Dupont De Nemours Inc (DD)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 2.43 | 3.02 | 2.90 | 2.37 | 1.20 |
| Quick ratio | 1.54 | 2.00 | 0.84 | 0.49 | 0.64 |
| Cash ratio | 0.77 | 1.33 | 0.40 | 0.30 | 0.18 |
DuPont de Nemours Inc's liquidity ratios paint a picture of the company's ability to meet its short-term financial obligations.
The current ratio has been fluctuating over the past five years, ranging from 1.20 in 2019 to 3.02 in 2022. In 2023, the current ratio stands at 2.43, indicating that the company has $2.43 in current assets for every $1 in current liabilities. This suggests that DuPont de Nemours Inc has a relatively strong ability to cover its short-term obligations with its current assets.
The quick ratio, which excludes inventory from current assets, also shows fluctuations over the years, ranging from 0.68 in 2019 to 2.05 in 2022. At 1.60 in 2023, the quick ratio indicates that the company has $1.60 in liquid assets for every $1 in current liabilities. This ratio provides a more conservative measure of liquidity, as it excludes inventory that may not be easily convertible to cash.
Lastly, the cash ratio has also varied over the years, from 0.23 in 2019 to 1.37 in 2022. At 0.83 in 2023, the cash ratio shows that the company only has $0.83 in cash and cash equivalents for every $1 in current liabilities. This ratio provides an even more conservative measure of liquidity, focusing solely on the most liquid assets.
Overall, these liquidity ratios reflect DuPont de Nemours Inc's ability to meet its short-term financial commitments. The current and quick ratios suggest that the company has improved its liquidity position, while the cash ratio highlights the importance of having sufficient cash reserves to cover immediate liabilities.
See also:
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 87.52 | 77.55 | 46.50 | 46.66 | 92.46 |
DuPont de Nemours Inc's cash conversion cycle has shown varying trends over the years. In 2023, the company's cash conversion cycle stands at 93.67 days, showing an increase from the previous year's value of 80.42 days. This indicates that, on average, it takes DuPont de Nemours 93.67 days to convert its investments in inventory and other resources into cash received from sales.
In 2021, the cash conversion cycle was at its lowest in the past five years, at 67.87 days, which suggests the company was efficient in managing its working capital and converting its assets into cash. However, in 2019, the cash conversion cycle peaked at 100.47 days, indicating a longer time taken to turn resources into cash and signaling potential inefficiencies in managing working capital.
Overall, fluctuations in the cash conversion cycle can reflect changes in the company's inventory management, accounts receivable collections, and accounts payable turnover. A lower cash conversion cycle is generally favorable as it indicates efficient utilization of resources and faster conversion into cash, while a higher cycle may indicate potential liquidity concerns or inefficiencies in working capital management for DuPont de Nemours Inc.