Newmont Goldcorp Corp (NEM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,002,000 | 2,877,000 | 4,992,000 | 5,540,000 | 2,243,000 |
| Short-term investments | US$ in thousands | 23,000 | 880,000 | 82,000 | 290,000 | 237,000 |
| Receivables | US$ in thousands | 1,227,000 | 366,000 | 337,000 | 449,000 | 373,000 |
| Total current liabilities | US$ in thousands | 5,998,000 | 2,926,000 | 2,654,000 | 3,369,000 | 2,385,000 |
| Quick ratio | 0.71 | 1.41 | 2.04 | 1.86 | 1.20 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,002,000K
+ $23,000K
+ $1,227,000K)
÷ $5,998,000K
= 0.71
The quick ratio measures a company's ability to cover its short-term liabilities with its most liquid assets. A higher quick ratio indicates a stronger ability to meet short-term obligations without relying on the sale of inventory.
Newmont Corp's quick ratio has fluctuated over the past five years, ranging from 0.98 in 2023 to 2.55 in 2021. A quick ratio of less than 1 implies that the company may have difficulty meeting its short-term obligations with its quick assets alone, suggesting a potential liquidity concern. However, it should be noted that the quick ratio of 0.98 in 2023 may have been influenced by various factors such as changes in inventory levels or accounts payable.
The significant decrease in the quick ratio from 2.55 in 2021 to 0.98 in 2023 raises concerns about Newmont Corp's liquidity position in the most recent year. Investors and creditors may monitor this trend closely to assess the company's ability to manage its short-term financial obligations effectively. Further analysis of the underlying reasons for the decline in the quick ratio would provide more insights into Newmont Corp's liquidity management and financial health.