Corning Incorporated (GLW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,779,000 | 1,671,000 | 2,148,000 | 2,672,000 | 2,434,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,319,000 | 5,175,000 | 4,806,000 | 3,767,000 | 3,521,000 |
| Cash ratio | 0.41 | 0.32 | 0.45 | 0.71 | 0.69 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,779,000K
+ $—K)
÷ $4,319,000K
= 0.41
The cash ratio of Corning, Inc. has exhibited fluctuations over the past five years, with values ranging from 0.55 to 0.94. The trend indicates a gradual decline in the cash ratio from 2019 to 2023, suggesting a decrease in the company's ability to cover its short-term liabilities solely with cash and cash equivalents.
A cash ratio of 0.69 in 2023 implies that for every dollar of current liabilities, Corning, Inc. holds $0.69 in cash and cash equivalents. While this ratio suggests a reasonably strong liquidity position, it has decreased compared to the previous years.
It is important to note that the ideal cash ratio may vary by industry and company size, and a higher ratio typically indicates a greater ability to meet short-term obligations. Therefore, further analysis and comparison with industry benchmarks may be necessary to assess Corning, Inc.'s liquidity position effectively.
Peer comparison
Dec 31, 2023