Ingredion Incorporated (INGR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 997,000 | 401,000 | 236,000 | 328,000 | 665,000 |
| Short-term investments | US$ in thousands | 11,000 | 8,000 | 3,000 | 4,000 | 0 |
| Total current liabilities | US$ in thousands | 1,281,000 | 1,772,000 | 1,882,000 | 1,512,000 | 1,078,000 |
| Cash ratio | 0.79 | 0.23 | 0.13 | 0.22 | 0.62 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($997,000K
+ $11,000K)
÷ $1,281,000K
= 0.79
The cash ratio of Ingredion Incorporated has shown fluctuations over the past five years. Starting at 0.62 on December 31, 2020, it decreased to 0.22 by December 31, 2021, indicating a decrease in the company's ability to cover its short-term liabilities solely with its cash and cash equivalents. The ratio further declined to 0.13 by December 31, 2022, reaching its lowest point in the period under review. This suggests a potential liquidity strain or a shift in the company's cash management strategy.
However, there was a noticeable improvement in the cash ratio by the end of December 31, 2023, where it increased to 0.23, signaling a slight recovery in the company's ability to meet its short-term obligations with available cash resources. The most significant improvement was seen by December 31, 2024, with the cash ratio reaching 0.79, indicating a substantial increase in the company's liquidity position.
Overall, the fluctuations in Ingredion Incorporated's cash ratio highlight the importance of monitoring liquidity levels, as the ability to convert cash into readily available funds to cover short-term liabilities is crucial for a company's financial health and operational stability.
Peer comparison
Dec 31, 2024