Keurig Dr Pepper Inc (KDP)

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	267,000	260,000	278,000	204,000	535,000	925,000	552,000	592,000	567,000	200,000	167,000	335,000	240,000	191,000	149,000	197,000	75,000	74,000	106,000	85,000
Short-term investments	US$ in thousands	—	-67,000	—	—	49,000	—	—	—	59,000	85,000	86,000	88,000	88,000	90,000	—	—	—	—	—	—
Total current liabilities	US$ in thousands	8,916,000	8,814,000	9,056,000	9,127,000	8,076,000	7,233,000	6,761,000	6,448,000	6,485,000	6,795,000	6,917,000	7,225,000	7,694,000	7,329,000	7,298,000	6,858,000	6,474,000	6,550,000	6,695,000	6,656,000
Cash ratio		0.03	0.02	0.03	0.02	0.07	0.13	0.08	0.09	0.10	0.04	0.04	0.06	0.04	0.04	0.02	0.03	0.01	0.01	0.02	0.01

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($267,000K + $—K) ÷ $8,916,000K
= 0.03

The cash ratio of Keurig Dr Pepper Inc has declined steadily over the past eight quarters from 0.17 in Q1 2022 to 0.08 in Q4 2023. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened over time. A cash ratio below 1 suggests that the company may have difficulty meeting its short-term obligations solely with its liquid assets. The decreasing trend in the cash ratio may imply that Keurig Dr Pepper Inc has been reinvesting its cash into other areas of the business or experiencing challenges in managing its working capital efficiently. Further analysis of the company's cash flow management and liquidity position would be necessary to determine the underlying reasons for this decline and to assess its overall financial health.