Kenvue Inc. (KVUE)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,382,000 | 1,062,000 | 1,231,000 | 1,691,000 |
| Short-term investments | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 5,481,000 | 5,161,000 | 5,299,000 | 4,210,000 |
| Cash ratio | 0.25 | 0.21 | 0.23 | 0.40 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,382,000K
+ $—K)
÷ $5,481,000K
= 0.25
The cash ratio of Kenvue Inc. has demonstrated some fluctuations over the past year, varying from 0.21 to 0.40. This ratio compares the company's cash and cash equivalents to its current liabilities, providing insights into its short-term liquidity position. A higher cash ratio indicates the company has a greater ability to cover its immediate obligations with available cash.
In the most recent quarter ending December 31, 2023, Kenvue Inc. had a cash ratio of 0.25. This suggests that for every dollar of current liabilities, the company had $0.25 in cash and cash equivalents on hand. While the ratio has increased from the previous quarter, it is still relatively low, indicating a potential risk in meeting short-term obligations solely from cash reserves.
Overall, Kenvue Inc. should continue monitoring its cash ratio to ensure it maintains a healthy level of liquidity to address any unforeseen cash needs and sustain its financial stability. A careful balance between investing excess cash for optimal returns and maintaining an adequate cash buffer is essential for the company's financial health.
Peer comparison
Dec 31, 2023