Ingredion Incorporated (INGR)
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 | 401,000 | 335,000 | 257,000 | 216,000 | 236,000 | 294,000 | 318,000 | 324,000 | 328,000 | 434,000 | 542,000 | 576,000 | 665,000 | 553,000 | 1,047,000 | 278,000 | 264,000 | 443,000 | 297,000 | 255,000 |
| Short-term investments | US$ in thousands | 8,000 | 6,000 | 6,000 | 5,000 | 3,000 | 4,000 | 4,000 | 5,000 | 4,000 | 4,000 | 7,000 | 1,000 | — | — | 1,000 | 2,000 | 4,000 | 3,000 | 4,000 | 4,000 |
| Total current liabilities | US$ in thousands | 1,772,000 | 1,668,000 | 1,720,000 | 1,892,000 | 1,882,000 | 1,949,000 | 1,845,000 | 1,721,000 | 1,512,000 | 1,457,000 | 1,101,000 | 1,380,000 | 1,458,000 | 955,000 | 1,282,000 | 937,000 | 967,000 | 957,000 | 894,000 | 901,000 |
| Cash ratio | 0.23 | 0.20 | 0.15 | 0.12 | 0.13 | 0.15 | 0.17 | 0.19 | 0.22 | 0.30 | 0.50 | 0.42 | 0.46 | 0.58 | 0.82 | 0.30 | 0.28 | 0.47 | 0.34 | 0.29 |
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 measures a company's ability to cover its short-term liabilities solely with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
In the case of Ingredion Inc, the cash ratio has fluctuated over the past eight quarters. The ratio ranged from 0.15 to 0.38 during Q1 2022 to Q4 2023. In Q4 2023, the cash ratio was at its highest level of 0.38, indicating an improvement in the company's ability to cover its short-term liabilities with its cash reserves.
However, it's essential to note that the cash ratio should be analyzed in conjunction with other liquidity ratios to get a comprehensive view of the company's liquidity position. Overall, an increasing trend in the cash ratio suggests an improved financial position in terms of short-term liquidity management for Ingredion Inc.
Peer comparison
Dec 31, 2023