Element Solutions Inc (ESI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 359,400 | 289,300 | 265,600 | 330,100 | 291,900 |
| Short-term investments | US$ in thousands | — | 19,900 | 32,700 | — | — |
| Total current liabilities | US$ in thousands | 379,700 | 369,400 | 344,400 | 415,200 | 314,300 |
| Cash ratio | 0.95 | 0.84 | 0.87 | 0.80 | 0.93 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($359,400K
+ $—K)
÷ $379,700K
= 0.95
The cash ratio of Element Solutions Inc. over the period from December 31, 2020, to December 31, 2024, demonstrates a generally stable liquidity position with some fluctuations. Specifically, the cash ratio was 0.93 at the end of 2020, indicating that the company's cash and cash equivalents exceeded its current liabilities at that time. By the end of 2021, the ratio declined to 0.80, suggesting a slight reduction in liquidity but still maintaining enough cash to cover less than one full current liability.
In 2022, the ratio increased modestly to 0.87, reflecting a marginal improvement in liquidity management or cash reserves in relation to current liabilities. The figure continued to decrease slightly in 2023 to 0.84, indicating a minor dip in the liquidity margin, yet remaining close to the 2022 level.
The most notable change occurs in 2024, where the cash ratio rises again to 0.95. This indicates an improved liquidity position, with cash and cash equivalents nearly covering all current liabilities. Overall, the trend reveals a relatively stable liquidity profile with slight fluctuations, and the increase in 2024 reinforces a stronger cash position relative to current obligations, potentially enhancing the company's short-term financial resilience.
Peer comparison
Dec 31, 2024