Dow Inc (DOW)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,987,000 | 3,080,000 | 2,924,000 | 3,319,000 | 3,886,000 | 2,216,000 | 2,367,000 | 3,143,000 | 2,988,000 | 2,911,000 | 3,491,000 | 4,133,000 | 5,104,000 | 4,549,000 | 3,724,000 | 3,633,000 | 2,367,000 | 2,823,000 | 2,446,000 | 2,904,000 |
| Short-term investments | US$ in thousands | 1,705,000 | 15,000 | 20,000 | 637,000 | 949,000 | 158,000 | 181,000 | 258,000 | 265,000 | 166,000 | 105,000 | 72,000 | 45,000 | 30,000 | 2,000 | 1,000 | 21,000 | 11,000 | 20,000 | 101,000 |
| Total current liabilities | US$ in thousands | 9,957,000 | 10,248,000 | 9,649,000 | 10,489,000 | 11,331,000 | 12,315,000 | 13,309,000 | 13,054,000 | 13,226,000 | 12,793,000 | 12,308,000 | 11,354,000 | 11,108,000 | 10,207,000 | 9,786,000 | 11,121,000 | 10,679,000 | 11,201,000 | 11,605,000 | 15,373,000 |
| Cash ratio | 0.47 | 0.30 | 0.31 | 0.38 | 0.43 | 0.19 | 0.19 | 0.26 | 0.25 | 0.24 | 0.29 | 0.37 | 0.46 | 0.45 | 0.38 | 0.33 | 0.22 | 0.25 | 0.21 | 0.20 |
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 measures a company's ability to cover its short-term liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Looking at Dow Inc's cash ratio over the past eight quarters, we observe some fluctuations. The trend shows a decrease in the cash ratio from 0.51 in December 2022 to 0.45 in March 2023. However, the ratio increased to 0.49 by December 2023.
The relatively high cash ratios indicate that Dow Inc has a solid ability to cover its short-term liabilities with cash on hand. However, there seems to be some volatility in the ratio, as seen in the fluctuations over the quarters.
It's important to further analyze the company's overall liquidity position and cash management practices to better understand the drivers behind the fluctuations in the cash ratio. This will provide deeper insights into Dow Inc's ability to manage its short-term obligations and potential cash flow risks.
Peer comparison
Dec 31, 2023