Eastman Chemical Company (EMN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 837,000 | 548,000 | 493,000 | 459,000 | 564,000 |
| Short-term investments | US$ in thousands | — | 1,000 | 1,000 | 26,000 | 1,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,708,000 | 2,576,000 | 3,251,000 | 2,971,000 | 2,038,000 |
| Quick ratio | 0.31 | 0.21 | 0.15 | 0.16 | 0.28 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($837,000K
+ $—K
+ $—K)
÷ $2,708,000K
= 0.31
The Quick Ratio of Eastman Chemical Company has shown fluctuations over the past five years.
As of December 31, 2020, the Quick Ratio was 0.28, indicating that the company had $0.28 in liquid assets available to cover each $1 of current liabilities. This suggests a relatively weak liquidity position.
By December 31, 2021, the Quick Ratio decreased to 0.16, indicating a significant decline in the company's ability to meet its short-term obligations with its most liquid assets.
The ratio continued to decline to 0.15 by December 31, 2022, which may raise concerns about the company's liquidity and ability to settle its current liabilities promptly.
However, there was a slight improvement by December 31, 2023, with the Quick Ratio increasing to 0.21. Although still relatively low, this improvement suggests a positive trend in the company's ability to cover its short-term obligations.
By December 31, 2024, the Quick Ratio further improved to 0.31, indicating that the company had increased its liquidity position and had $0.31 in liquid assets for every $1 of current liabilities. This improvement suggests a stronger ability to meet short-term financial obligations.
Overall, the Quick Ratio trend of Eastman Chemical Company indicates fluctuations in liquidity over the past five years, with improvements in recent years but with room for further enhancement to achieve a more robust liquidity position.
Peer comparison
Dec 31, 2024