Corning Incorporated (GLW)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,768,000 | 1,779,000 | 1,671,000 | 2,148,000 | 2,672,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,053,000 | 1,572,000 | 1,721,000 | 2,004,000 | 2,133,000 |
| Total current liabilities | US$ in thousands | 4,919,000 | 4,319,000 | 5,175,000 | 4,806,000 | 3,767,000 |
| Quick ratio | 0.78 | 0.78 | 0.66 | 0.86 | 1.28 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,768,000K
+ $—K
+ $2,053,000K)
÷ $4,919,000K
= 0.78
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Corning Incorporated's quick ratio has shown a declining trend over the five-year period provided.
As of December 31, 2020, the quick ratio stood at 1.28, indicating that Corning had $1.28 of liquid assets available to cover each $1 of current liabilities. However, by December 31, 2021, the quick ratio decreased to 0.86, signaling that the company's liquidity position weakened as it had only $0.86 in liquid assets for every $1 of current liabilities.
The downward trend continued in the subsequent years, with the quick ratio dropping to 0.66 by December 31, 2022, raising concerns about the company's ability to swiftly settle its short-term obligations. However, there was a slight improvement by December 31, 2023, with the quick ratio increasing to 0.78. This uptick suggested a temporary recovery in Corning's liquidity position.
By the end of December 31, 2024, the quick ratio remained stable at 0.78, indicating that Corning continued to have $0.78 in liquid assets available for every $1 of current liabilities. Overall, the declining trend in the quick ratio from 2020 to 2022 and the subsequent modest recovery suggest fluctuations in Corning's ability to quickly cover its short-term liabilities with its liquid assets. Monitoring and managing liquidity levels will be crucial for the company's financial health and stability in the future.
Peer comparison
Dec 31, 2024