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