Fortune Brands Innovations Inc. (FBIN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 366,400 | 642,500 | 425,600 | 419,100 | 387,900 |
| Short-term investments | US$ in thousands | — | 84,600 | 45,900 | — | — |
| Total current liabilities | US$ in thousands | 1,200,400 | 1,544,700 | 1,971,100 | 1,345,100 | 1,409,300 |
| Cash ratio | 0.31 | 0.47 | 0.24 | 0.31 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($366,400K
+ $—K)
÷ $1,200,400K
= 0.31
The cash ratio of Fortune Brands Innovations Inc. has fluctuated over the past five years, ranging from 0.24 to 0.47. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations with readily available funds.
In 2022, the company's cash ratio was at its highest point of 0.47, signaling a robust liquidity position that year. However, in 2021, the cash ratio dropped to 0.24, indicating a decrease in the ability to cover short-term liabilities with cash and cash equivalents compared to the previous year.
The cash ratio improved in 2023 to 0.31, bringing it closer to the levels seen in 2020 and 2019. This suggests a partial recovery in the company's liquidity position compared to the lower ratio observed in 2021.
Overall, the fluctuation in the cash ratio of Fortune Brands Innovations Inc. over the past five years indicates varying levels of liquidity and highlights the importance of monitoring cash and cash equivalents to ensure the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023