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.