Newmont Goldcorp Corp (NEM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,512,000 | 6,515,000 | 7,696,000 | 8,505,000 | 6,272,000 |
| Total current liabilities | US$ in thousands | 5,998,000 | 2,926,000 | 2,654,000 | 3,369,000 | 2,385,000 |
| Current ratio | 1.25 | 2.23 | 2.90 | 2.52 | 2.63 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,512,000K ÷ $5,998,000K
= 1.25
The current ratio of Newmont Corp has shown a decreasing trend over the past five years, declining from 2.63 in 2019 to 1.25 at the end of 2023. This indicates that the company's ability to meet its short-term liabilities with its current assets has weakened over the period.
While a current ratio above 1.0 generally indicates that a company is able to cover its short-term obligations, the significant drop in the ratio suggests a potential liquidity concern for Newmont Corp. A current ratio of 1.25 as of Dec 31, 2023, implies that the company may have limited flexibility in meeting its immediate payment obligations.
It is essential for stakeholders to monitor the company's liquidity position closely, as a continuing downward trend in the current ratio may signal financial distress and the need for management to take corrective actions to improve the company's liquidity position. Further analysis of Newmont Corp's liquidity management and working capital strategies would provide a comprehensive understanding of its financial health.