Dow Inc (DOW)
Quick 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 | 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 |
| Receivables | US$ in thousands | 6,614,000 | 7,382,000 | 7,658,000 | 7,812,000 | 7,755,000 | 8,530,000 | 9,717,000 | 9,959,000 | 9,554,000 | 9,409,000 | 9,106,000 | 8,265,000 | 7,390,000 | 7,072,000 | 6,881,000 | 7,611,000 | 7,555,000 | 8,808,000 | 8,569,000 | 12,375,000 |
| 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 |
| Quick ratio | 1.14 | 1.02 | 1.10 | 1.12 | 1.11 | 0.89 | 0.92 | 1.02 | 0.97 | 0.98 | 1.03 | 1.10 | 1.13 | 1.14 | 1.08 | 1.01 | 0.93 | 1.04 | 0.95 | 1.00 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,987,000K
+ $1,705,000K
+ $6,614,000K)
÷ $9,957,000K
= 1.14
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing quick assets (such as cash, marketable securities, and accounts receivable) by current liabilities.
Based on the provided data, Dow Inc's quick ratio has fluctuated over the past eight quarters, ranging from 0.99 to 1.25. Generally, a quick ratio above 1.0 indicates that the company has an appropriate level of liquid assets to cover its short-term liabilities.
The trend shows that the quick ratio has been relatively stable, with slight variations from quarter to quarter. The quick ratio peaked at 1.25 in June 2023, indicating a strong ability to meet short-term obligations with quick assets. However, it dipped to 0.99 in September 2022, which may have raised concerns about the company's short-term liquidity at that time.
Overall, the trend suggests that Dow Inc has generally maintained a healthy level of liquidity to cover its short-term obligations, although it's important to monitor any significant deviations from this pattern.
Peer comparison
Dec 31, 2023