Newmont Goldcorp Corp (NEM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,002,000 | 2,877,000 | 4,992,000 | 5,540,000 | 2,243,000 |
| Short-term investments | US$ in thousands | 23,000 | 880,000 | 82,000 | 290,000 | 237,000 |
| Total current liabilities | US$ in thousands | 5,998,000 | 2,926,000 | 2,654,000 | 3,369,000 | 2,385,000 |
| Cash ratio | 0.50 | 1.28 | 1.91 | 1.73 | 1.04 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,002,000K
+ $23,000K)
÷ $5,998,000K
= 0.50
The cash ratio of Newmont Corp has fluctuated over the past five years, with a noticeable decrease from 2.42 in 2021 to 0.77 in 2023. The cash ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio is typically preferred as it indicates a stronger ability to meet short-term obligations.
The significant drop in the cash ratio from 2021 to 2023 may indicate that Newmont Corp has less cash on hand relative to its short-term liabilities. This could be a cause for concern as it may limit the company's ability to handle unexpected expenses or economic downturns.
It is important for stakeholders to closely monitor the cash ratio trend of Newmont Corp to ensure that the company maintains a healthy liquidity position. Additionally, management should consider strategies to improve the cash position to enhance the company's financial stability and flexibility in the short term.