Newmont Goldcorp Corp (NEM)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,002,000 | 3,190,000 | 2,829,000 | 2,657,000 | 2,877,000 | 3,058,000 | 4,307,000 | 4,272,000 | 4,992,000 | 4,636,000 | 4,583,000 | 5,518,000 | 5,540,000 | 4,828,000 | 3,808,000 | 3,709,000 | 2,243,000 | 2,712,000 | 1,827,000 | 3,545,000 |
| Short-term investments | US$ in thousands | 23,000 | 24,000 | 409,000 | 847,000 | 880,000 | 755,000 | 51,000 | 72,000 | 82,000 | 157,000 | 222,000 | 240,000 | 290,000 | 313,000 | 310,000 | 175,000 | 237,000 | 157,000 | 24,000 | 56,000 |
| Total current liabilities | US$ in thousands | 5,998,000 | 2,808,000 | 2,693,000 | 2,752,000 | 2,926,000 | 2,324,000 | 2,451,000 | 2,417,000 | 2,654,000 | 2,799,000 | 2,787,000 | 3,480,000 | 3,369,000 | 2,703,000 | 2,378,000 | 1,952,000 | 2,385,000 | 2,611,000 | 2,538,000 | 1,815,000 |
| Cash ratio | 0.50 | 1.14 | 1.20 | 1.27 | 1.28 | 1.64 | 1.78 | 1.80 | 1.91 | 1.71 | 1.72 | 1.65 | 1.73 | 1.90 | 1.73 | 1.99 | 1.04 | 1.10 | 0.73 | 1.98 |
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 measures a company's ability to cover its short-term obligations using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations.
Analyzing the trend of Newmont Corp's cash ratio over the past eight quarters, we observe fluctuations with a general downward trend. In Q1 2022, the cash ratio stood at 2.35, indicating a strong liquidity position. However, the ratio decreased steadily to 0.77 in Q4 2023, which is a significant decline.
Such a decline in the cash ratio could suggest potential concerns regarding Newmont Corp's liquidity and ability to swiftly meet its short-term obligations using available cash resources. It may also indicate that the company has been utilizing its cash reserves for investments, acquisitions, or other operational activities over time.
Further investigation into the reasons behind the decreasing trend in Newmont Corp's cash ratio is recommended to assess the company's financial health and liquidity management strategy effectively.