Eastman Chemical Company (EMN)
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 | 548,000 | 439,000 | 410,000 | 599,000 | 493,000 | 461,000 | 456,000 | 487,000 | 459,000 | 717,000 | 609,000 | 540,000 | 564,000 | 650,000 | 704,000 | 680,000 | 204,000 | 207,000 | 186,000 | 195,000 |
| Short-term investments | US$ in thousands | 1,000 | 16,000 | — | — | 1,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,576,000 | 2,615,000 | 2,787,000 | 2,971,000 | 3,251,000 | 3,207,000 | 3,148,000 | 3,136,000 | 2,971,000 | 3,113,000 | 2,295,000 | 2,016,000 | 2,038,000 | 1,789,000 | 1,878,000 | 2,315,000 | 1,789,000 | 2,080,000 | 2,226,000 | 2,352,000 |
| Cash ratio | 0.21 | 0.17 | 0.15 | 0.20 | 0.15 | 0.14 | 0.14 | 0.16 | 0.15 | 0.23 | 0.27 | 0.27 | 0.28 | 0.36 | 0.37 | 0.29 | 0.11 | 0.10 | 0.08 | 0.08 |
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 measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Based on the data provided for Eastman Chemical Co, the cash ratio has fluctuated over the past eight quarters. In Q4 2023, the cash ratio was reported at 0.25, indicating an improvement from the previous quarter. This suggests that Eastman Chemical Co had $0.25 of cash and cash equivalents for every $1 of short-term liabilities in Q4 2023.
Looking at the trend over the past year, the cash ratio has generally been within the range of 0.17 to 0.25, with some variability from quarter to quarter. Eastman Chemical Co's cash ratio has shown some volatility, but overall, it appears to have maintained a reasonable level of liquidity to cover its short-term obligations.
It is important for investors and analysts to monitor the cash ratio over time to assess Eastman Chemical Co's ability to meet its short-term financial obligations and manage liquidity effectively.
Peer comparison
Dec 31, 2023