Dupont De Nemours Inc (DD)
Quick ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash | 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 |
Receivables | US$ in thousands | 2,370,000 | 2,518,000 | 2,159,000 | 2,421,000 | 3,802,000 |
Total current liabilities | US$ in thousands | 3,098,000 | 3,733,000 | 4,931,000 | 12,226,000 | 8,346,000 |
Quick ratio | 1.54 | 2.00 | 0.84 | 0.49 | 0.64 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,392,000K
+ $0K
+ $2,370,000K)
÷ $3,098,000K
= 1.54
The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position and suggests that the company is more capable of covering its current liabilities with its quick assets.
Analyzing DuPont de Nemours Inc's quick ratio over the past five years, we observe fluctuations in the ratio. In 2019, the quick ratio was relatively low at 0.68, indicating potential liquidity concerns as the company may have had difficulty meeting its short-term obligations with its liquid assets alone.
However, the quick ratio improved significantly in 2020 to 1.35, and further increased to 1.16 in 2021. This upward trend suggests that the company enhanced its ability to cover its current liabilities with its quick assets and had a stronger liquidity position during these years.
In 2022, the quick ratio saw a substantial increase to 2.05, reflecting a notable improvement in liquidity and the company's ability to meet its short-term obligations comfortably with its liquid assets.
Even though there was a slight decrease in 2023 to 1.60, the quick ratio remains at a healthy level, indicating that DuPont de Nemours Inc still has a sufficient level of quick assets to cover its current liabilities in the short term.
Overall, the trend of DuPont de Nemours Inc's quick ratio over the past five years shows a positive development in the company's liquidity position, with notable improvements in recent years, which is a favorable indicator for its financial health and ability to manage short-term obligations.
Peer comparison
Dec 31, 2023