International Flavors & Fragrances Inc (IFF)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 469,000 | 703,000 | 493,000 | 715,000 | 656,836 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,333,000 | 3,758,000 | 3,738,000 | 3,633,000 | 1,903,730 |
| Cash ratio | 0.11 | 0.19 | 0.13 | 0.20 | 0.35 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($469,000K
+ $—K)
÷ $4,333,000K
= 0.11
The cash ratio of International Flavors & Fragrances Inc has shown a declining trend over the past five years. Starting at 0.35 on December 31, 2020, the ratio decreased to 0.20 by December 31, 2021. It further declined to 0.13 by December 31, 2022, indicating a significant decrease in the company's ability to cover short-term liabilities with its cash reserves. However, there was a slight improvement in the ratio to 0.19 by December 31, 2023. Unfortunately, by December 31, 2024, the cash ratio fell to 0.11, suggesting that International Flavors & Fragrances Inc may have a more limited capacity to meet its immediate financial obligations solely through its cash holdings. This trend raises concerns about the company's liquidity position and the need to closely monitor its cash management strategies for enhanced financial stability.
Peer comparison
Dec 31, 2024