Ingredion Incorporated (INGR)
Cash ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 401,000 | 236,000 | 328,000 | 665,000 | 264,000 |
Short-term investments | US$ in thousands | 8,000 | 3,000 | 4,000 | — | 4,000 |
Total current liabilities | US$ in thousands | 1,772,000 | 1,882,000 | 1,512,000 | 1,458,000 | 967,000 |
Cash ratio | 0.23 | 0.13 | 0.22 | 0.46 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($401,000K
+ $8,000K)
÷ $1,772,000K
= 0.23
The cash ratio of Ingredion Inc has varied over the past five years, ranging from 0.16 to 0.49. The ratio indicates the company's ability to cover its short-term liabilities using only its cash and cash equivalents.
In 2023, the cash ratio increased to 0.38 from 0.16 in 2022, showing a significant improvement in its liquidity position. This suggests that Ingredion Inc had a higher proportion of cash and cash equivalents relative to its current liabilities in 2023.
On the other hand, the cash ratio was highest in 2020 at 0.49, indicating that the company had a strong ability to meet its short-term obligations with its available cash reserves at that time. The ratio decreased in 2021 to 0.26 but improved in 2022 and 2023.
Overall, the trend in the cash ratio for Ingredion Inc shows fluctuations, with periods of both improvement and decline in its liquidity position over the past five years. It is essential for investors and stakeholders to monitor this ratio to assess the company's short-term solvency and cash management strategies.
Peer comparison
Dec 31, 2023