Newmont Goldcorp Corp (NEM)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.63 | 1.25 | 2.23 | 2.90 | 2.52 |
| Quick ratio | 0.48 | 0.50 | 1.28 | 1.91 | 1.73 |
| Cash ratio | 0.48 | 0.50 | 1.28 | 1.91 | 1.73 |
Newmont Goldcorp Corp's liquidity ratios depict the company's ability to meet its short-term financial obligations. The current ratio, which compares current assets to current liabilities, shows a healthy trend over the years from 2.52 in 2020 to 2.90 in 2021 but saw a decline to 1.25 in 2023 before slightly improving to 1.63 in 2024. This indicates the company may have faced some liquidity challenges in 2023 but managed to enhance its position in 2024.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also displays a similar pattern. Starting at 1.73 in 2020, the ratio increased to 1.91 in 2021 before dropping significantly to 0.50 in 2023 and 0.48 in 2024. This suggests that Newmont Goldcorp Corp may have struggled to meet its short-term obligations using only its most liquid assets in 2023 and 2024.
Moreover, the cash ratio, which focuses solely on cash and cash equivalents compared to current liabilities, aligns closely with the quick ratio. The ratio remained relatively stable from 1.73 in 2020 to 1.91 in 2021 but declined to 0.50 in 2023 and 0.48 in 2024, indicating a potential strain on the company's ability to cover immediate liabilities with its cash reserves alone in those years.
Overall, Newmont Goldcorp Corp's liquidity ratios reflect a mixed performance, with improvements in some years and challenges in others. It is essential for stakeholders to closely monitor these ratios to assess the company's short-term financial health and ability to navigate potential liquidity risks.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 65.70 | 109.50 | 73.94 | 84.08 | 89.33 |
The cash conversion cycle of Newmont Goldcorp Corp has shown fluctuations over the years:
- On December 31, 2020, the company's cash conversion cycle stood at 89.33 days.
- By December 31, 2021, the cycle decreased to 84.08 days, indicating an improvement in the company's ability to convert its resources into cash more efficiently.
- The cycle continued to decrease to 73.94 days by December 31, 2022, reflecting further improvement in cash management.
- However, on December 31, 2023, the cash conversion cycle increased to 109.50 days, suggesting a potential slowdown in the company's cash conversion efficiency.
- By December 31, 2024, the cycle decreased significantly to 65.70 days, indicating a strong recovery in cash conversion efficiency.
Overall, Newmont Goldcorp Corp has experienced fluctuations in its cash conversion cycle, with periods of improvement and slight setbacks. Monitoring and managing this cycle effectively will be crucial for ensuring the company's financial health and operational efficiency in the future.