FMC Corporation (FMC)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 357,300 302,400 572,000 516,800 568,900
Short-term investments US$ in thousands — — 12,400 3,700 100
Total current liabilities US$ in thousands 3,019,200 3,384,600 3,799,600 3,520,300 2,829,000
Cash ratio 0.12 0.09 0.15 0.15 0.20

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($357,300K + $—K) ÷ $3,019,200K
= 0.12

The cash ratio of FMC Corporation has shown a decreasing trend over the years. As of December 31, 2020, the company's cash ratio stood at 0.20, indicating that it had $0.20 in cash and cash equivalents for every $1 of current liabilities. By December 31, 2024, the cash ratio had decreased to 0.12, suggesting a decline in the company's liquidity position.

A cash ratio below 1.0 typically indicates that a company may not have enough liquid assets to cover its short-term financial obligations. While the cash ratio of 0.12 in 2024 is lower than in 2020, it is important to further investigate the reasons behind this decline to assess the company's ability to meet its immediate financial obligations effectively.

Overall, the decreasing trend in FMC Corporation's cash ratio highlights the importance of closely monitoring its liquidity position and cash management practices to ensure financial stability and the ability to meet short-term obligations in the future.