International Flavors & Fragrances Inc (IFF)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 703,000 483,000 711,000 650,000 607,000
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 3,758,000 3,728,000 3,633,000 1,904,000 1,552,190
Cash ratio 0.19 0.13 0.20 0.34 0.39

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($703,000K + $—K) ÷ $3,758,000K
= 0.19

The cash ratio of International Flavors & Fragrances Inc. has shown a declining trend over the past five years, decreasing from 0.50 in 2019 to 0.37 in 2023. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

A cash ratio of 0.37 in 2023 indicates that the company had $0.37 of cash and cash equivalents for every $1 of current liabilities. This suggests that International Flavors & Fragrances Inc. may have had a lower liquidity position in 2023 compared to previous years.

While a declining cash ratio may raise concerns about the company's short-term liquidity position, it is essential to consider other liquidity ratios and financial metrics to assess the overall financial health of the company. Further analysis of the company's cash management practices, working capital management, and overall financial performance would provide a more comprehensive understanding of International Flavors & Fragrances Inc.'s liquidity position.


Peer comparison

Dec 31, 2023