Dow Inc (DOW)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,189,000 | 2,987,000 | 3,886,000 | 2,988,000 | 5,104,000 |
| Short-term investments | US$ in thousands | — | 1,705,000 | 949,000 | 265,000 | 45,000 |
| Total current liabilities | US$ in thousands | 10,288,000 | 9,957,000 | 11,331,000 | 13,226,000 | 11,108,000 |
| Cash ratio | 0.21 | 0.47 | 0.43 | 0.25 | 0.46 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,189,000K
+ $—K)
÷ $10,288,000K
= 0.21
The cash ratio of Dow Inc has shown fluctuations over the years based on the data provided. As of December 31, 2020, the cash ratio stood at 0.46, indicating that the company had $0.46 in cash and cash equivalents for every $1 of current liabilities. By December 31, 2021, the ratio decreased to 0.25, suggesting a decrease in the company's ability to cover its short-term obligations with its available cash holdings.
However, the cash ratio improved in the following years, reaching 0.43 by December 31, 2022, and further increasing to 0.47 by December 31, 2023, indicating a strengthening liquidity position. Notably, by December 31, 2024, the cash ratio dropped to 0.21, implying a decline in the company's ability to meet its short-term liabilities solely from its cash reserves.
Overall, the trend in Dow Inc's cash ratio suggests a degree of variability in the company's liquidity management over the years, with periods of improvement followed by declines. It is essential for stakeholders to monitor these fluctuations to assess the company's ability to maintain adequate cash reserves to cover its short-term obligations.
Peer comparison
Dec 31, 2024