Dupont De Nemours Inc (DD)

Liquidity ratios

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
Current ratio 2.43 2.15 2.98 3.29 3.02 2.39 2.55 2.82 2.90 2.01 2.66 2.21 2.37 1.80 1.50 1.22 1.20 1.62 1.65 1.72
Quick ratio 1.54 1.01 1.93 2.14 2.00 0.67 0.68 0.78 0.84 1.33 1.99 1.59 0.49 1.11 0.92 0.66 0.64 0.92 0.91 1.06
Cash ratio 0.77 0.36 1.31 1.42 1.33 0.30 0.26 0.33 0.40 0.64 1.28 1.13 0.30 0.59 0.47 0.21 0.18 0.32 0.26 0.41

DuPont de Nemours Inc's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has ranged from 2.15 to 3.29 during this period, with an average of approximately 2.74. This indicates that the company generally has had more than enough current assets to cover its short-term liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has varied between 1.07 and 2.18. On average, the quick ratio has been around 1.44, suggesting that DuPont de Nemours Inc may sometimes have struggled to quickly cover its obligations with its most liquid assets.

Lastly, the cash ratio, which focuses solely on the company's cash and cash equivalents compared to its current liabilities, has shown a wider range of values from 0.30 to 1.47. The average cash ratio over the period is about 0.82, indicating that DuPont de Nemours Inc has held a relatively moderate level of cash to cover its short-term liabilities.

Overall, while the company's current ratio generally reflects a healthy liquidity position, the quick and cash ratios suggest some variability in its ability to quickly meet short-term obligations with its most liquid assets. Monitoring these ratios over time can provide insight into DuPont de Nemours Inc's liquidity management and financial health.

See also:

Dupont De Nemours Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 87.54 92.50 87.63 87.35 77.55 67.02 60.85 54.52 46.50 67.83 62.48 55.96 46.75 90.33 99.34 99.14 81.57 84.78 90.99 393.81

DuPont de Nemours Inc's cash conversion cycle has shown some variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 93.67 days, marking a slight improvement compared to the previous quarter's 98.39 days. However, this figure is higher than Q1 and Q2 2023 but lower than Q3 2023.

Looking at the trend over the past two years, there has been a general increase in the cash conversion cycle, with the highest point observed in Q3 2023 at 98.39 days. This increase indicates that DuPont de Nemours Inc is taking longer to convert its investments in inventory into cash.

Furthermore, the cash conversion cycle has significantly lengthened compared to the same period in the previous year, with Q4 2023 showing an increase of 13.25 days compared to Q4 2022. This suggests that the company may be facing challenges in managing its inventory, collection, and payment cycles efficiently.

Overall, DuPont de Nemours Inc should closely monitor its cash conversion cycle and take proactive measures to streamline its operations and improve its working capital management in order to enhance its cash flow efficiency.