Dupont De Nemours Inc (DD)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	1,856,000	2,803,000	3,662,000	2,011,000	2,544,000
Short-term investments	US$ in thousands	—	-411,000	1,302,000	0	1,083,000
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	4,801,000	3,098,000	3,848,000	4,262,000	4,699,000
Quick ratio		0.39	0.77	1.29	0.47	0.77

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,856,000K + $—K + $—K) ÷ $4,801,000K
= 0.39

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at the data provided for Dupont De Nemours Inc, we observe fluctuation in the quick ratio over the years:

- In 2020, the quick ratio was 0.77, indicating that the company had $0.77 in liquid assets available to cover each $1 of its current liabilities. This suggests a relatively healthy liquidity position.
- By the end of 2021, the quick ratio dropped to 0.47, signaling a decrease in liquidity compared to the previous year. This could potentially raise concerns about the company's ability to meet its short-term obligations.
- However, in 2022, the quick ratio increased significantly to 1.29, surpassing the ideal threshold of 1. This improvement implies that Dupont De Nemours Inc had more than enough liquid assets to cover its current liabilities, reflecting a strong liquidity position.
- In 2023, the quick ratio reverted to 0.77, coming back to the previous year's level and indicating a stable liquidity situation.
- Surprisingly, by the end of 2024, the quick ratio decreased sharply to 0.39, suggesting a significant decline in liquidity. This reduction may raise concerns about the company's ability to meet short-term obligations without potentially facing liquidity challenges.

Overall, the quick ratio of Dupont De Nemours Inc has shown fluctuations over the years, with variations in liquidity levels. It is important for investors and stakeholders to monitor these changes closely to assess the company's short-term financial health and liquidity position.