International Flavors & Fragrances Inc (IFF)

Cash 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 and cash equivalents	US$ in thousands	703,000	629,000	638,000	590,000	483,000	538,000	569,000	657,000	711,000	672,000	935,000	872,000	650,000	470,000	498,000	433,000	607,000	494,897	426,717	483,504
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	246	—	—	—	—
Total current liabilities	US$ in thousands	3,758,000	3,683,000	3,932,000	4,874,000	3,728,000	3,626,000	4,720,000	4,032,000	3,633,000	3,579,000	3,227,000	3,261,000	1,904,000	1,616,260	1,344,170	1,427,000	1,552,190	1,412,450	1,149,530	1,144,130
Cash ratio		0.19	0.17	0.16	0.12	0.13	0.15	0.12	0.16	0.20	0.19	0.29	0.27	0.34	0.29	0.37	0.30	0.39	0.35	0.37	0.42

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 fluctuated over the past eight quarters, ranging from 0.20 to 0.37. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

In Q4 2023 and Q3 2023, the company had a cash ratio of 0.37, indicating that it had $0.37 of cash for every $1 of current liabilities. This suggests a strong liquidity position to meet immediate obligations.

The cash ratio dropped to 0.29 in Q2 2023 and further to 0.21 in Q1 2023. This decline could signal a potential strain on the company's ability to cover short-term liabilities with cash alone during these quarters.

Comparing the most recent values to the same periods in the previous year, there was a notable improvement from Q4 2022 (0.20) to Q4 2023 (0.37), indicating enhanced liquidity. However, the ratios in Q2 2023 and Q1 2023 were slightly lower compared to the same periods in 2022.

Overall, the cash ratio trend for International Flavors & Fragrances Inc. suggests some variability in its liquidity position over the past eight quarters, with a recent improvement in the last two quarters but some fluctuations observed in between. It is essential for the company to manage its cash effectively to ensure it can meet its short-term obligations as they arise.