Greif Bros Corporation (GEF)
Cash ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 180,900 | 147,100 | 124,600 | 105,900 | 77,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 939,300 | 1,047,900 | 1,314,100 | 1,000,100 | 825,400 |
| Cash ratio | 0.19 | 0.14 | 0.09 | 0.11 | 0.09 |
October 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($180,900K
+ $—K)
÷ $939,300K
= 0.19
The cash ratio of Greif Inc has shown a fluctuating trend over the past five years, indicating its ability to cover short-term liabilities with its cash and cash equivalents.
In 2019, the cash ratio was 0.27, and it increased to 0.28 in 2020, displaying a slight improvement in the company's short-term liquidity position. However, there was a more significant improvement in 2021, as the cash ratio surged to 0.20, signaling the company's enhanced capacity to meet its short-term obligations with cash on hand.
The cash ratio experienced further growth in 2022, reaching 0.33, implying that Greif Inc had a greater ability to cover its short-term liabilities solely with its cash and cash equivalents. The most recent data from October 31, 2023, reveals a substantial increase in the cash ratio to 0.39, which suggests an even stronger liquidity position for the company.
Overall, the increasing trend in Greif Inc's cash ratio signifies an improved capacity to meet short-term obligations using its available cash and cash equivalents. This upward trajectory may indicate effective management of cash resources, which could enhance the company's ability to weather economic downturns and seize potential investment opportunities.