Newmont Goldcorp Corp (NEM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,619,000 | 3,002,000 | 2,877,000 | 4,992,000 | 5,540,000 |
| Short-term investments | US$ in thousands | 21,000 | 23,000 | 880,000 | 82,000 | 290,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 7,543,000 | 5,998,000 | 2,926,000 | 2,654,000 | 3,369,000 |
| Quick ratio | 0.48 | 0.50 | 1.28 | 1.91 | 1.73 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,619,000K
+ $21,000K
+ $—K)
÷ $7,543,000K
= 0.48
The quick ratio, also known as the acid-test ratio, measures a company's ability to quickly cover its short-term liabilities with its most liquid assets.
Newmont Goldcorp Corp's quick ratio has shown varying trends over the past five years.
As of December 31, 2020, the quick ratio was 1.73, indicating that the company had $1.73 in liquid assets for every $1 of current liabilities. This suggests a strong ability to meet short-term obligations.
By December 31, 2021, the quick ratio had improved to 1.91, reflecting further enhancement in the company's liquidity position.
However, the quick ratio decreased to 1.28 by December 31, 2022, which may indicate a slight decrease in liquidity compared to the previous year.
Subsequently, the quick ratio dropped significantly to 0.50 by December 31, 2023, suggesting a potential liquidity challenge as the company may have had fewer liquid assets to cover its short-term liabilities.
By December 31, 2024, the quick ratio decreased further to 0.48, reinforcing concerns about the company's ability to meet its short-term obligations with its current liquid assets.
Overall, the trend in the quick ratio indicates fluctuations in Newmont Goldcorp Corp's liquidity position over the five-year period, with a notable decline in recent years, raising potential concerns about its ability to cover short-term liabilities with liquid assets.