Newell Brands Inc (NWL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 198,000 | 332,000 | 287,000 | 440,000 | 981,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,437,000 | 2,897,000 | 3,078,000 | 3,317,000 | 3,621,000 |
| Cash ratio | 0.08 | 0.11 | 0.09 | 0.13 | 0.27 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($198,000K
+ $—K)
÷ $2,437,000K
= 0.08
The cash ratio of Newell Brands Inc shows a declining trend from 0.27 on December 31, 2020, to 0.08 on December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has been decreasing over the years. A cash ratio below 1 suggests that the company may have difficulty meeting its current obligations solely with its cash reserves. It is essential for Newell Brands Inc to closely monitor its cash position and liquidity management to ensure financial stability and meet its financial obligations in the future.
Peer comparison
Dec 31, 2024