FMC Corporation (FMC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 302,400 | 572,000 | 516,800 | 568,900 | 339,100 |
| Short-term investments | US$ in thousands | — | 12,400 | 3,700 | 100 | — |
| Total current liabilities | US$ in thousands | 3,384,600 | 3,799,600 | 3,520,300 | 2,829,000 | 2,723,900 |
| Cash ratio | 0.09 | 0.15 | 0.15 | 0.20 | 0.12 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($302,400K
+ $—K)
÷ $3,384,600K
= 0.09
The cash ratio of FMC Corp. has shown a declining trend over the past five years, decreasing from 0.30 in 2019 to 0.21 in 2023. This indicates that the company has less cash and cash equivalents available to cover its current liabilities in 2023 compared to the previous years. A lower cash ratio may suggest that FMC Corp. may be facing potential liquidity challenges or may be utilizing its cash for other investments or operational activities. It is important for stakeholders to closely monitor the company's cash management practices and liquidity position to ensure financial stability and operational efficiency.
Peer comparison
Dec 31, 2023