Eastman Chemical Company (EMN)
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 | 837,000 | 622,000 | 514,000 | 499,000 | 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 |
| Short-term investments | US$ in thousands | — | — | 16,000 | 10,000 | 1,000 | 16,000 | — | — | 1,000 | — | 14,000 | 37,000 | 26,000 | — | 1,000 | — | 1,000 | — | 14,000 | 17,000 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,708,000 | 2,590,000 | 2,741,000 | 2,618,000 | 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 |
| Quick ratio | 0.31 | 0.24 | 0.19 | 0.19 | 0.21 | 0.17 | 0.15 | 0.20 | 0.15 | 0.14 | 0.15 | 0.17 | 0.16 | 0.23 | 0.27 | 0.27 | 0.28 | 0.36 | 0.38 | 0.30 |
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 given period from March 31, 2020, to December 31, 2024. The quick ratio is a measure of a company's ability to meet its short-term obligations using its most liquid assets.
The quick ratio started at a relatively low level of 0.30 on March 31, 2020, and gradually increased to 0.38 by June 30, 2020. However, it then fluctuated between 0.27 and 0.36 until December 31, 2020. From December 31, 2020, to September 30, 2021, there was a significant decrease in the quick ratio from 0.28 to 0.23, indicating a potential liquidity challenge.
Subsequently, the quick ratio continued to decline, reaching a low of 0.14 on September 30, 2022. This may suggest that Eastman Chemical Company's ability to cover its short-term liabilities with its quick assets weakened during this period.
However, there was a slight recovery in the quick ratio from March 31, 2023, to September 30, 2024, with the ratio hovering between 0.17 and 0.24. The quick ratio improved to 0.31 by December 31, 2024, indicating a stronger liquidity position at the end of the period.
Overall, the fluctuating trend in the quick ratio of Eastman Chemical Company suggests varying levels of liquidity and ability to meet short-term obligations during the analyzed period, with some periods of potential liquidity stress.
Peer comparison
Dec 31, 2024