Dupont De Nemours Inc (DD)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.33 2.28 2.21 2.33 2.43 2.15 2.98 3.29 2.94 2.39 2.55 2.82 1.89 2.01 2.66 2.21 2.31 1.80 1.50 1.22
Quick ratio 0.39 0.58 0.54 0.77 0.90 0.36 1.31 1.42 1.29 0.30 0.26 0.33 0.47 0.64 1.28 1.13 0.77 0.59 0.47 0.21
Cash ratio 0.39 0.58 0.54 0.77 0.90 0.36 1.31 1.42 1.29 0.30 0.26 0.33 0.47 0.64 1.28 1.13 0.77 0.59 0.47 0.21

Dupont De Nemours Inc's liquidity ratios show a positive trend over the analyzed period. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, increased steadily from 1.22 in March 2020 to 2.43 in December 2024. This suggests an improvement in the company's short-term liquidity position.

Similarly, the quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also exhibited a positive trend, rising from 0.21 in March 2020 to 0.39 in December 2024. Although the quick ratio is generally lower than the current ratio, it still indicates an increasing ability to cover immediate liabilities.

The cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) compared to current liabilities, followed a similar upward trajectory, increasing from 0.21 in March 2020 to 0.39 in December 2024. This suggests that Dupont De Nemours Inc had a growing capacity to meet its short-term obligations using only its cash reserves.

Overall, the improving liquidity ratios of Dupont De Nemours Inc indicate a strengthening financial position and an enhanced ability to meet its short-term financial obligations efficiently over the analyzed period.

See also:

Dupont De Nemours Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 98.67 97.42 96.47 98.36 98.12 103.78 104.77 107.76 101.18 101.62 93.92 84.54 103.80 90.53 79.83 71.73 100.58 106.21 116.04 117.04

Dupont De Nemours Inc's cash conversion cycle provides valuable insights into its operational efficiency and liquidity management. Over the past few years, the company has demonstrated fluctuations in its cash conversion cycle, which is a key indicator of how quickly the company can convert its resources into cash flow.

From March 31, 2020, to December 31, 2024, the cash conversion cycle of Dupont De Nemours Inc has shown a varying trend. It started at 117.04 days in March 2020, gradually decreased to 71.73 days by March 2021, before increasing again. The cycle peaked at 107.76 days in March 2023 and has been relatively stable around the 100 days mark in the recent quarters.

A lower cash conversion cycle indicates that the company is taking less time to convert its investments in inventory and other resources into cash, which is generally favorable. It shows that the company is efficient in managing its working capital and generating cash from its operations.

However, an excessively low cash conversion cycle may also suggest aggressive sales tactics, such as offering extended credit terms to customers, which could potentially impact the company's liquidity position in the long run.

In contrast, a longer cash conversion cycle could indicate inefficiencies in inventory management, slow collection of receivables, or challenges in paying off payables promptly. This may result in tying up capital in non-liquid assets, leading to potential cash flow issues.

Overall, analyzing Dupont De Nemours Inc's cash conversion cycle provides important insights into the company's operational performance, efficiency, and liquidity management strategies, helping investors and stakeholders make informed decisions about the company's financial health and performance.