Newmont Goldcorp Corp (NEM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,619,000 | 3,002,000 | 2,877,000 | 4,992,000 | 5,540,000 |
| Short-term investments | US$ in thousands | 21,000 | 23,000 | 880,000 | 82,000 | 290,000 |
| Total current liabilities | US$ in thousands | 7,543,000 | 5,998,000 | 2,926,000 | 2,654,000 | 3,369,000 |
| Cash ratio | 0.48 | 0.50 | 1.28 | 1.91 | 1.73 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,619,000K
+ $21,000K)
÷ $7,543,000K
= 0.48
The cash ratio of Newmont Goldcorp Corp has exhibited fluctuations over the years based on the provided data. On December 31, 2020, the cash ratio was 1.73, indicating that the company had $1.73 in cash and cash equivalents for every $1 of current liabilities, suggesting a healthy liquidity position.
By December 31, 2021, the cash ratio improved to 1.91, showing a further increase in liquidity and the ability of the company to cover its short-term obligations comfortably with its available cash reserves.
However, by December 31, 2022, the cash ratio decreased to 1.28, signaling a slight decline in liquidity compared to the previous year but still indicating a strong ability to meet short-term obligations with available cash on hand.
On December 31, 2023, the cash ratio dropped significantly to 0.50, highlighting a potential liquidity concern as the company may have had limited cash resources relative to its short-term liabilities.
Moreover, by December 31, 2024, the cash ratio decreased further to 0.48, indicating a continued downward trend in liquidity and a potential challenge in meeting short-term obligations solely from cash reserves.
Overall, the analysis of the cash ratio suggests that while Newmont Goldcorp Corp had strong liquidity in the initial years, there was a notable decline in liquidity in the later years, raising potential concerns about the company's ability to cover short-term liabilities solely from its cash reserves. Investing further in optimizing liquidity management may be advisable to enhance the company's financial flexibility and resilience.