Dupont De Nemours Inc (DD)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	2,392,000	3,662,000	1,972,000	2,544,000	1,540,000
Short-term investments	US$ in thousands	0	1,302,000	0	1,083,000	0
Total current liabilities	US$ in thousands	3,098,000	3,733,000	4,931,000	12,226,000	8,346,000
Cash ratio		0.77	1.33	0.40	0.30	0.18

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,392,000K + $0K) ÷ $3,098,000K
= 0.77

The cash ratio of DuPont de Nemours Inc has fluctuated over the past five years, ranging from 0.23 to 1.37.

In 2019, the cash ratio was at its lowest at 0.23, indicating that the company had relatively lower cash reserves compared to its current liabilities. This could potentially imply a higher reliance on short-term borrowing or difficulties in meeting immediate payment obligations.

The cash ratio improved significantly in 2020 to 0.59, suggesting that the company enhanced its liquidity position by increasing its cash reserves or reducing its current liabilities. This improvement continued in 2021 with a cash ratio of 0.53, although it remained relatively low compared to 2020.

The highest cash ratio was observed in 2022 at 1.37, indicating a substantial increase in cash reserves compared to current liabilities. This could signify better financial health, as the company had a more comfortable ability to cover its short-term obligations with cash on hand.

However, in 2023, the cash ratio decreased to 0.83, indicating a decline in liquidity compared to the previous year. This reduction may raise concerns about the company's ability to meet short-term financial obligations without relying on other sources of funding.

Overall, the trend in DuPont de Nemours Inc's cash ratio suggests fluctuations in liquidity levels over the years, with improvements observed in some periods and declines in others. It is essential for the company to maintain an optimal level of liquidity to ensure its ability to meet short-term financial obligations efficiently.