FMC Corporation (FMC)

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 357,300 416,700 471,500 417,800 302,400 323,800 941,500 494,400 572,000 363,800 591,500 365,100 516,800 341,000 728,500 416,700 568,900 297,100 342,700 436,200
Short-term investments US$ in thousands — — — 2,700 — — — 6,700 12,400 28,600 17,700 10,000 -510,300 4,300 3,400 7,900 100 1,000 — —
Total current liabilities US$ in thousands 3,019,200 3,588,400 3,523,100 3,552,900 3,384,600 3,446,500 4,352,700 4,668,300 3,799,600 3,632,200 3,985,700 3,829,300 3,520,300 3,427,600 3,841,500 3,380,100 2,829,000 2,368,300 2,682,900 2,456,500
Cash ratio 0.12 0.12 0.13 0.12 0.09 0.09 0.22 0.11 0.15 0.11 0.15 0.10 0.00 0.10 0.19 0.13 0.20 0.13 0.13 0.18

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 over the periods provided ranged from 0.00 to 0.22. 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 stronger ability to cover its short-term obligations, while a lower ratio suggests potential liquidity issues.

FMC Corporation's cash ratio fluctuated throughout the period, with the highest ratio recorded in June 2023 at 0.22, indicating a strong cash position relative to its current liabilities at that time. The lowest cash ratio was seen in December 2021 and September 2021 at 0.00 and 0.10, respectively, signaling potential liquidity concerns during those periods.

Overall, the varying cash ratio of FMC Corporation over the analyzed period suggests fluctuations in its liquidity position. It is essential for the company to maintain a balance between investing in growth opportunities and having sufficient cash reserves to meet its short-term obligations effectively.