Dupont De Nemours Inc (DD)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	6,364,000	7,514,000	11,315,000	8,065,000	10,877,000
Total current liabilities	US$ in thousands	4,801,000	3,098,000	3,848,000	4,262,000	4,699,000
Current ratio		1.33	2.43	2.94	1.89	2.31

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,364,000K ÷ $4,801,000K
= 1.33

The current ratio of Dupont De Nemours Inc has fluctuated over the past five years. As of December 31, 2020, the current ratio was 2.31, indicating that the company had $2.31 in current assets for every $1 in current liabilities. This suggests Dupont De Nemours Inc had a strong ability to cover its short-term obligations in the previous year.

However, by December 31, 2021, the current ratio had decreased to 1.89, which may signal a slight deterioration in the company's liquidity position. It now had $1.89 in current assets for every $1 in current liabilities, indicating a potential strain on its short-term liquidity.

In the following year, the current ratio improved significantly to 2.94 by December 31, 2022. This suggests that Dupont De Nemours Inc was better positioned to meet its short-term financial obligations, with $2.94 in current assets for every $1 in current liabilities.

By December 31, 2023, the current ratio declined to 2.43, but it remained at a relatively healthy level compared to the previous year. The company still had adequate short-term liquidity with $2.43 in current assets for every $1 in current liabilities.

However, by December 31, 2024, the current ratio dropped significantly to 1.33, indicating a potential liquidity concern for Dupont De Nemours Inc. With only $1.33 in current assets for every $1 in current liabilities, the company may face challenges in meeting its short-term financial obligations.

Overall, fluctuations in Dupont De Nemours Inc's current ratio suggest varying levels of liquidity over the years, with notable improvements and declines in different periods. Monitoring this ratio closely is crucial for assessing the company's short-term financial health and ability to manage its current liabilities effectively.