Corning Incorporated (GLW)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,779,000 | 1,639,000 | 1,538,000 | 1,146,000 | 1,671,000 | 1,630,000 | 1,629,000 | 2,016,000 | 2,148,000 | 2,212,000 | 2,320,000 | 2,868,000 | 2,672,000 | 2,514,000 | 2,158,000 | 2,025,000 | 2,434,000 | 971,000 | 1,178,000 | 1,456,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 354,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,572,000 | 1,725,000 | 1,674,000 | 1,688,000 | 1,721,000 | 1,620,000 | 1,786,000 | 1,910,000 | 2,004,000 | 2,114,000 | 2,057,000 | 1,900,000 | 2,133,000 | 2,099,000 | 1,712,000 | 1,708,000 | 1,836,000 | 2,024,000 | 2,103,000 | 1,974,000 |
| Total current liabilities | US$ in thousands | 4,319,000 | 4,285,000 | 4,411,000 | 4,773,000 | 5,175,000 | 5,167,000 | 5,530,000 | 5,061,000 | 4,806,000 | 4,337,000 | 4,624,000 | 3,513,000 | 3,767,000 | 3,849,000 | 3,020,000 | 3,191,000 | 3,521,000 | 3,600,000 | 3,416,000 | 3,059,000 |
| Quick ratio | 0.78 | 0.79 | 0.73 | 0.59 | 0.66 | 0.63 | 0.62 | 0.78 | 0.86 | 1.00 | 0.95 | 1.36 | 1.28 | 1.29 | 1.28 | 1.17 | 1.21 | 0.83 | 0.96 | 1.12 |
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, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
For Corning, Inc., the quick ratio has fluctuated over the past eight quarters. In Q4 2023, the quick ratio was 1.05, indicating that the company had $1.05 in liquid assets available to cover each dollar of current liabilities. This was a slight decrease from the previous quarter's ratio of 1.08.
Looking at the trend over the past year, the quick ratio has generally improved compared to the same quarter in the previous year. In Q4 2022, the quick ratio was 0.88, which has steadily increased to 1.05 by Q4 2023.
The quick ratio exceeding 1 for the past few quarters suggests that Corning, Inc. has been in a strong position to meet its short-term obligations using its current liquid assets. However, it is essential to monitor this ratio over time to ensure the company's liquidity remains stable and sustainable.
Peer comparison
Dec 31, 2023