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