Greif Bros Corporation (GEF)
Cash ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 197,700 | 180,900 | 147,100 | 124,600 | 105,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,011,900 | 939,300 | 1,047,900 | 1,314,100 | 1,000,100 |
| Cash ratio | 0.20 | 0.19 | 0.14 | 0.09 | 0.11 |
October 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($197,700K
+ $—K)
÷ $1,011,900K
= 0.20
The cash ratio of Greif Bros Corporation has shown varying trends over the past five years.
As of October 31, 2020, the cash ratio was 0.11, indicating that the company had $0.11 in cash and cash equivalents for every $1 of current liabilities. This suggests a relatively low level of liquidity at that point in time.
By October 31, 2021, the cash ratio decreased to 0.09, reflecting a further decline in liquidity. This may raise concerns about the company's ability to meet its short-term obligations using its available cash resources.
However, there was an improvement in the cash ratio by October 31, 2022, when it increased to 0.14. This suggests that the company had strengthened its liquidity position compared to the previous year.
The trend continued to improve in the following years, with the cash ratio reaching 0.19 by October 31, 2023, and further increasing to 0.20 by October 31, 2024. These higher ratios indicate an enhanced ability to cover its short-term liabilities with available cash reserves.
Overall, the upward trend in the cash ratio over the last three years indicates an improved liquidity position for Greif Bros Corporation, suggesting a more robust ability to meet its short-term financial obligations.