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