WK Kellogg Co (KLG)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 40,000 | 47,000 | 44,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 841,000 | 770,000 | 778,000 |
| Cash ratio | 0.05 | 0.06 | 0.06 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($40,000K
+ $—K)
÷ $841,000K
= 0.05
The cash ratio of WK Kellogg Co for the period ending June 30, 2024, was 0.06, which indicates that for every $1 of current liabilities, the company had $0.06 in cash and cash equivalents available to cover those obligations. This ratio remained consistent at 0.06 as of September 30, 2024. However, by December 31, 2024, the cash ratio decreased slightly to 0.05.
A cash ratio below 1 typically suggests that the company may have difficulty meeting its short-term financial obligations solely with cash on hand. While a higher cash ratio is generally preferred, a low cash ratio could indicate that the company may need to rely on other sources of liquidity, such as accessing credit lines or selling assets, to manage its short-term liabilities effectively.
It is important for WK Kellogg Co to monitor its cash ratio regularly to ensure it maintains sufficient liquidity to meet its financial commitments and weather any unexpected challenges efficiently.
Peer comparison
Dec 31, 2024