FMC Corporation (FMC)

Quick ratio

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

December 31, 2024 calculation

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

The quick ratio for FMC Corporation has shown a declining trend over the years. As of December 31, 2020, the quick ratio stood at 0.20, indicating that the company had $0.20 in liquid assets available to cover each $1 of current liabilities. However, this ratio decreased to 0.15 by the end of 2021 and remained at the same level by the end of 2022. The quick ratio further dropped to 0.09 on December 31, 2023, suggesting a potential liquidity strain as the company had only $0.09 in quick assets for every $1 of current liabilities. Although there was a slight improvement by the end of 2024 with a quick ratio of 0.12, it is important to note that the ratio still remains below the ideal threshold of 1.

This declining trend in the quick ratio indicates that FMC Corporation may be facing challenges in meeting its short-term obligations with its current liquid assets. It is crucial for the company to closely monitor its liquidity position and take appropriate measures to improve its ability to cover its short-term liabilities in a timely manner.