Dow Inc (DOW)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,189,000 | 2,883,000 | 3,341,000 | 3,723,000 | 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 |
| Short-term investments | US$ in thousands | — | 1,303,000 | 570,000 | 771,000 | 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 |
| Receivables | US$ in thousands | 6,864,000 | 7,316,000 | 7,079,000 | 7,069,000 | 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 |
| Total current liabilities | US$ in thousands | 10,288,000 | 10,827,000 | 10,308,000 | 10,249,000 | 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 |
| Quick ratio | 0.88 | 1.06 | 1.07 | 1.13 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,189,000K
+ $—K
+ $6,864,000K)
÷ $10,288,000K
= 0.88
The quick ratio, also known as the acid-test ratio, is a financial metric used to evaluate a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing a company's current assets excluding inventory by its current liabilities. A quick ratio of 1 or higher is generally considered satisfactory, as it indicates that a company has enough liquid assets to cover its short-term liabilities.
Based on the provided data for Dow Inc, the quick ratio has fluctuated over the years. It started at 1.01 on March 31, 2020, increased to a peak of 1.14 on September 30, 2020, and then showed some variability before reaching 0.88 on December 31, 2024. A quick ratio below 1 may indicate potential liquidity issues, as the company's liquid assets may not be sufficient to cover its short-term obligations.
It is important to monitor changes in the quick ratio over time to assess the company's liquidity position and its ability to meet its financial obligations. A declining trend in the quick ratio may signal deterioration in the company's short-term financial health, while an increasing trend could indicate improved liquidity management.
Overall, Dow Inc's fluctuating quick ratio suggests some variability in its ability to cover its short-term liabilities with its liquid assets. Further analysis of the company's financial statements and industry benchmarks may provide additional insights into its liquidity and financial stability.
Peer comparison
Dec 31, 2024