Corning Incorporated (GLW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,779,000 | 1,671,000 | 2,148,000 | 2,672,000 | 2,434,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,572,000 | 1,721,000 | 2,004,000 | 2,133,000 | 1,836,000 |
| Total current liabilities | US$ in thousands | 4,319,000 | 5,175,000 | 4,806,000 | 3,767,000 | 3,521,000 |
| Quick ratio | 0.78 | 0.66 | 0.86 | 1.28 | 1.21 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,779,000K
+ $—K
+ $1,572,000K)
÷ $4,319,000K
= 0.78
The quick ratio of Corning, Inc. has fluctuated over the past five years, ranging from 0.88 to 1.48. A quick ratio above 1 indicates that the company has more than enough liquid assets to cover its short-term liabilities, which is a positive sign of financial health.
In 2023, the quick ratio improved to 1.05 from 0.88 in 2022, reflecting an increase in the company's ability to meet its short-term obligations using its most liquid assets. This suggests improved liquidity and a stronger ability to weather short-term financial challenges.
However, the quick ratio is lower compared to the levels seen in 2020 and 2021 when it was above 1. This indicates that Corning, Inc. may have slightly less liquidity to cover its short-term liabilities compared to those years.
Overall, while the quick ratio of 1.05 in 2023 signals a satisfactory liquidity position, it's important for the company to continue monitoring and managing its liquidity effectively to ensure it can meet its short-term obligations comfortably.
Peer comparison
Dec 31, 2023