Newmont Goldcorp Corp (NEM)

Liquidity ratios

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
Current ratio 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 2.63 2.18 1.83 2.97
Quick ratio 0.71 1.17 1.27 1.40 1.41 1.77 1.93 1.97 2.04 1.83 1.85 1.73 1.86 2.02 1.84 2.10 1.20 1.39 0.99 2.14
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

Newmont Corp's liquidity ratios have shown some fluctuations in the recent quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged from 1.25 to 2.38 over the past eight quarters. A current ratio above 1 indicates that the company has more current assets than current liabilities. Although the ratio has been above 1 consistently, the trend shows a slight decrease from Q3 2022 to Q4 2023.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has ranged from 0.98 to 2.53 over the same period. This ratio provides insight into the company's ability to meet short-term obligations without relying on the sale of inventory. Newmont Corp's quick ratio has also exhibited some variability, with a noticeable dip in Q4 2023 compared to the previous quarters.

Lastly, the cash ratio, which focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents, has fluctuated between 0.77 and 2.35. The decreasing trend from Q2 2022 to Q4 2023 indicates a potential change in the company's cash position relative to its current liabilities.

Overall, while Newmont Corp has maintained ratios above the ideal threshold of 1 for all three liquidity ratios, there have been some fluctuations in the recent quarters that may warrant further monitoring to ensure the company's ability to meet its short-term obligations.

See also:

Newmont Goldcorp Corp Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 7.09 -19.51 -11.91 -10.86 -10.66 -13.25 -12.74 -6.76 -11.60 -11.53 -12.49 -12.36 -15.05 -23.68 -59.72 -205.33 -180.47 -169.11 -89.32 -53.80

The cash conversion cycle of Newmont Corp has exhibited variability over the past quarters. In Q4 2023, the company's cash conversion cycle increased significantly to 76.22 days, indicating a longer time to convert its investments in inventory and other resources into cash. This could be a cause for concern as it may lead to liquidity challenges or inefficiencies in managing working capital.

In contrast, the cash conversion cycle was more efficient in Q3 and Q4 2022, with values of 30.71 days and 30.74 days respectively. During these periods, Newmont Corp was able to manage its working capital more effectively, resulting in a quicker conversion of assets into cash.

Overall, it is important for Newmont Corp to closely monitor and manage its cash conversion cycle to ensure efficient utilization of resources and maintain optimal liquidity levels. fluctuations in the cash conversion cycle may be influenced by factors such as inventory management, accounts receivable collection, and accounts payable practices.