Newmont Goldcorp Corp (NEM)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.63 1.96 2.11 2.15 1.25 2.12 2.28 2.38 2.23 2.72 2.82 2.92 2.90 2.67 2.67 2.40 2.52 2.83 2.81 3.31
Quick ratio 0.48 0.48 0.46 0.43 0.51 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
Cash ratio 0.48 0.48 0.46 0.43 0.51 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

Newmont Goldcorp Corp's liquidity ratios show a fluctuating trend over the years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been declining from a high of 3.31 in March 2020 to 1.63 in December 2024. This indicates a potential weakening in the company's short-term liquidity position.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, follows a similar downward trend from 1.99 in March 2020 to 0.48 in December 2024. This suggests that the company may have difficulty meeting its immediate obligations without relying on selling its inventory.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, also shows a notable decrease from 1.99 in March 2020 to 0.48 in December 2024. This indicates a declining ability to cover short-term liabilities solely with cash on hand.

Overall, the decreasing liquidity ratios over the years raise concerns about Newmont Goldcorp Corp's ability to meet its short-term financial obligations without facing liquidity constraints. It may be important for the company to closely monitor and potentially improve its liquidity position to ensure financial stability and flexibility in the face of uncertainties.


See also:

Newmont Goldcorp Corp Liquidity Ratios (Quarterly Data)


Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 65.70 66.43 73.58 79.53 109.50 87.34 85.80 82.96 73.42 78.23 78.46 87.79 91.62 93.75 92.65 94.12 89.33 88.00 87.51 45.66

The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. It consists of three components: days inventory outstanding, days sales outstanding, and days payables outstanding.

For Newmont Goldcorp Corp, the cash conversion cycle has fluctuated over the years based on the provided data. As of December 31, 2024, the cash conversion cycle stands at 65.70 days. This means that on average, it takes Newmont Goldcorp Corp 65.70 days to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the trend of the cash conversion cycle for Newmont Goldcorp Corp, we observe a significant decrease from 109.50 days on December 31, 2023, to 65.70 days on December 31, 2024. This indicates an improvement in the efficiency of the company's working capital management during this period.

A lower cash conversion cycle is generally considered favorable as it signifies that the company is able to generate cash more quickly from its operating activities. However, it is essential to assess the reasons behind these fluctuations and whether they are driven by improvements in inventory management, sales collection efficiency, or payment terms negotiation with suppliers.

Overall, a decreasing trend in the cash conversion cycle for Newmont Goldcorp Corp suggests potential improvements in the company's operational efficiency and working capital management, leading to better liquidity and financial performance.