Keurig Dr Pepper Inc (KDP)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	510,000	267,000	535,000	567,000	240,000
Short-term investments	US$ in thousands	—	—	49,000	2,000	88,000
Total current liabilities	US$ in thousands	8,087,000	8,916,000	8,076,000	6,485,000	7,694,000
Cash ratio		0.06	0.03	0.07	0.09	0.04

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($510,000K + $—K) ÷ $8,087,000K
= 0.06

The cash ratio of Keurig Dr Pepper Inc has fluctuated over the past five years. It stood at 0.04 as of December 31, 2020, indicating that for every dollar of current liabilities, the company had $0.04 in cash. By December 31, 2021, the cash ratio improved to 0.09, suggesting an increase in the company's ability to cover its short-term obligations with cash. However, there was a slight decrease to 0.07 by December 31, 2022. The ratio further decreased to 0.03 as of December 31, 2023, signaling a potential liquidity concern. Nonetheless, by December 31, 2024, the cash ratio recovered to 0.06, albeit remaining below the levels observed in the previous years. Overall, while there have been fluctuations in the cash ratio, Keurig Dr Pepper Inc should continue monitoring its liquidity position to ensure it can meet its short-term obligations effectively.