Eastman Chemical Company (EMN)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 888,000 | 880,000 | 923,000 | 1,051,000 | 992,000 | 1,137,000 | 1,210,000 | 1,187,000 | 1,264,000 | 1,356,000 | 1,293,000 | 1,229,000 | 1,344,000 | 1,077,000 | 904,000 | 1,045,000 | 1,191,000 | 1,191,000 | 1,232,000 | 1,297,000 |
| 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 |
| Quick ratio | 0.56 | 0.51 | 0.48 | 0.56 | 0.46 | 0.50 | 0.53 | 0.53 | 0.58 | 0.67 | 0.83 | 0.88 | 0.94 | 0.97 | 0.86 | 0.75 | 0.78 | 0.67 | 0.64 | 0.63 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($548,000K
+ $1,000K
+ $888,000K)
÷ $2,576,000K
= 0.56
The quick ratio of Eastman Chemical Co has shown some fluctuations over the past eight quarters. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty in meeting its short-term obligations.
In Q4 2023, the quick ratio was 0.70, suggesting that the company had $0.70 in liquid assets available to cover each dollar of its current liabilities. This was an improvement from the previous quarter's quick ratio of 0.63.
Looking at the trend over the past eight quarters, the quick ratio has generally been below 1, indicating potential liquidity challenges for Eastman Chemical Co. However, it is important to consider the industry norms and compare the company's quick ratio with its peers to get a better understanding of its liquidity position.
Overall, the fluctuation in Eastman Chemical Co's quick ratio highlights the importance of closely monitoring the company's liquidity position and managing its short-term obligations effectively.
Peer comparison
Dec 31, 2023