Fortune Brands Innovations Inc. (FBIN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 381,100 | 366,400 | 642,500 | 425,600 | 419,100 |
| Short-term investments | US$ in thousands | — | 1,241,200 | 84,600 | 45,900 | — |
| Total current liabilities | US$ in thousands | 1,602,300 | 1,200,400 | 1,544,700 | 1,971,100 | 1,345,100 |
| Cash ratio | 0.24 | 1.34 | 0.47 | 0.24 | 0.31 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($381,100K
+ $—K)
÷ $1,602,300K
= 0.24
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Fortune Brands Innovations Inc.'s cash ratio has fluctuated over the years:
1. As of December 31, 2020, the cash ratio was 0.31, indicating that the company had $0.31 in cash and cash equivalents for every dollar of short-term liabilities.
2. By December 31, 2021, the cash ratio decreased to 0.24, suggesting a decline in the company's liquidity position.
3. However, there was a notable improvement by December 31, 2022, with the cash ratio increasing to 0.47, indicating better liquidity compared to the previous year.
4. The cash ratio saw a significant surge by December 31, 2023, reaching 1.34, which implies a substantial increase in the company's ability to meet its short-term obligations with cash on hand.
5. The cash ratio fell back to 0.24 by December 31, 2024, showing a decrease in liquidity compared to the previous year.
Overall, the trend in Fortune Brands Innovations Inc.'s cash ratio demonstrates some volatility, with varying levels of liquidity over the years. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's financial health and risk management strategies.
Peer comparison
Dec 31, 2024