FMC Corporation (FMC)

Cash ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash and cash equivalents US$ in thousands 302,400 323,800 941,500 494,400 572,000 363,800 591,500 365,100 516,800 341,000 728,500 416,700 568,900 297,100 342,700 436,200 339,100 419,700 83,400 109,500
Short-term investments US$ in thousands — — — 6,700 12,400 28,600 17,700 — -510,300 8,000 6,000 3,000 3,000 1,000 — — — — — —
Total current liabilities US$ in thousands 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 2,723,900 2,521,500 3,230,100 3,337,600
Cash ratio 0.09 0.09 0.22 0.11 0.15 0.11 0.15 0.10 0.00 0.10 0.19 0.12 0.20 0.13 0.13 0.18 0.12 0.17 0.03 0.03

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 fluctuated over the past eight quarters, ranging from 0.19 to 0.32. This ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

On average, FMC Corp. has maintained a cash ratio of approximately 0.23 during this period. A lower cash ratio indicates that the company may have a higher reliance on other current assets to meet its short-term obligations, while a higher ratio suggests a stronger liquidity position.

The significant increase in the cash ratio to 0.32 in Q2 2023 could be attributed to improved cash holdings or a reduction in short-term liabilities during that period. Conversely, the dip to 0.19 in Q1 2023 may indicate a temporary strain on liquidity or increased short-term obligations.

Overall, FMC Corp.'s cash ratio trend suggests fluctuations in its liquidity position, highlighting the importance of monitoring cash management strategies to ensure the company can meet its short-term financial commitments effectively.