Fortune Brands Innovations Inc. (FBIN)

Cash 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 and cash equivalents US$ in thousands 381,100 344,800 352,600 359,700 366,400 453,400 681,700 539,100 642,500 345,300 360,600 378,200 425,600 460,700 460,000 356,100 419,100 464,500 398,400 359,700
Short-term investments US$ in thousands 73,000 84,600 45,900
Total current liabilities US$ in thousands 1,602,300 1,532,200 1,548,000 1,062,500 1,200,400 1,192,100 1,640,700 1,413,200 1,544,700 2,047,900 1,441,500 1,354,800 1,971,100 1,528,800 1,364,700 1,197,000 1,345,100 1,135,000 952,800 1,246,100
Cash ratio 0.24 0.23 0.23 0.34 0.31 0.38 0.42 0.43 0.47 0.17 0.25 0.28 0.24 0.30 0.34 0.30 0.31 0.41 0.42 0.29

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 of Fortune Brands Innovations Inc. has fluctuated over the period from March 31, 2020, to December 31, 2024, ranging from a low of 0.17 to a high of 0.47. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a better ability to pay off current liabilities with the available cash on hand.

The trend in Fortune Brands Innovations Inc.'s cash ratio shows some variability, with some quarters showing better liquidity positions than others. For instance, the company experienced a peak in its cash ratio in December 2022 at 0.47, indicating a strong ability to cover short-term obligations at that time. On the other hand, there were periods, such as September 2022 and June 2024, when the cash ratio dropped to 0.17 and 0.23, respectively, suggesting a relatively lower liquidity position.

Overall, analyzing the cash ratio over time can provide insights into the company's ability to meet immediate financial obligations. It is essential for Fortune Brands Innovations Inc. to carefully manage its cash and cash equivalents to ensure it maintains a healthy liquidity position to weather any potential financial challenges.


Peer comparison

Dec 31, 2024

Company name
Symbol
Cash ratio
Fortune Brands Innovations Inc.
FBIN
0.24
Installed Building Products Inc
IBP
1.12
Lennar Corporation
LEN
0.93