Eastman Chemical Company (EMN)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 548,000 493,000 459,000 564,000 204,000
Short-term investments US$ in thousands 1,000 1,000 26,000 1,000 1,000
Total current liabilities US$ in thousands 2,576,000 3,251,000 2,971,000 2,038,000 1,789,000
Cash ratio 0.21 0.15 0.16 0.28 0.11

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($548,000K + $1,000K) ÷ $2,576,000K
= 0.21

The cash ratio for Eastman Chemical Co has varied over the past five years, ranging from 0.16 to 0.32. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that a company has a greater ability to cover its short-term obligations using its available cash.

In 2020, the cash ratio was at its highest point at 0.32, indicating that Eastman Chemical Co had a relatively strong liquidity position that year. However, in 2019, the ratio was at its lowest of 0.16, suggesting a lower ability to cover short-term liabilities with cash alone.

The cash ratio for 2021 and 2022 remained consistent at 0.19, indicating that Eastman Chemical Co maintained a moderate level of liquidity during these years. In 2023, the ratio increased slightly to 0.25, which suggests an improvement in the company's ability to cover short-term obligations with cash and cash equivalents compared to the previous two years.

Overall, fluctuations in the cash ratio of Eastman Chemical Co over the five-year period reflect changes in the company's liquidity position and its ability to meet short-term obligations with available cash resources.


Peer comparison

Dec 31, 2023