Dow Inc (DOW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,987,000 | 3,886,000 | 2,988,000 | 5,104,000 | 2,367,000 |
| Short-term investments | US$ in thousands | 1,705,000 | 949,000 | 265,000 | 45,000 | 21,000 |
| Total current liabilities | US$ in thousands | 9,957,000 | 11,331,000 | 13,226,000 | 11,108,000 | 10,679,000 |
| Cash ratio | 0.47 | 0.43 | 0.25 | 0.46 | 0.22 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,987,000K
+ $1,705,000K)
÷ $9,957,000K
= 0.47
The cash ratio of Dow Inc has fluctuated over the past five years. As of December 31, 2023, the cash ratio stands at 0.49, indicating that for every dollar of current liabilities, the company has $0.49 in cash and cash equivalents to cover those obligations. This represents a decrease from the previous year, where the ratio was 0.51. In 2021, the cash ratio was 0.30, showing a significant improvement compared to 2023. The ratio then increased to 0.54 in 2020 before dropping to 0.29 in 2019.
The fluctuation in the cash ratio suggests varying levels of liquidity and ability to meet short-term obligations over the years. Investors and creditors may closely monitor this trend to assess the company's short-term financial health and ability to weather economic uncertainties.
Peer comparison
Dec 31, 2023