Newell Brands Inc (NWL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 332,000 | 287,000 | 440,000 | 981,000 | 349,000 |
| Short-term investments | US$ in thousands | 12,000 | 12,000 | 11,000 | 9,000 | 9,500 |
| Total current liabilities | US$ in thousands | 2,897,000 | 3,078,000 | 3,317,000 | 3,621,000 | 2,978,000 |
| Cash ratio | 0.12 | 0.10 | 0.14 | 0.27 | 0.12 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($332,000K
+ $12,000K)
÷ $2,897,000K
= 0.12
The cash ratio for Newell Brands Inc has fluctuated over the past five years. In 2023, the cash ratio stands at 0.22, indicating that the company has $0.22 in cash and cash equivalents for every $1 of current liabilities. Compared to 2022 and 2019 where the cash ratio was 0.19 and 0.22 respectively, the current ratio is slightly higher, suggesting a slightly improved liquidity position in 2023.
However, the cash ratio is lower in 2023 compared to the ratios in 2020 and 2021, which were 0.36 and 0.23 respectively. This indicates that in 2023, the company may have a lower ability to cover its short-term liabilities with its available cash and cash equivalents compared to the previous two years.
Overall, the cash ratio of Newell Brands Inc has shown variability over the past five years, reflecting fluctuations in the company's cash holdings relative to its current liabilities. It is important for stakeholders to monitor this ratio along with other liquidity metrics to assess the company's ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023