Newell Brands Inc (NWL)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 198,000 | 494,000 | 382,000 | 372,000 | 332,000 | 396,000 | 317,000 | 271,000 | 287,000 | 636,000 | 323,000 | 344,000 | 440,000 | 494,000 | 637,000 | 682,000 | 981,000 | 858,000 | 619,000 | 476,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,437,000 | 3,402,000 | 3,502,000 | 2,956,000 | 2,897,000 | 3,019,000 | 3,060,000 | 3,291,000 | 3,078,000 | 4,108,000 | 4,630,000 | 3,183,000 | 3,317,000 | 3,709,000 | 3,776,000 | 3,363,000 | 3,621,000 | 3,108,000 | 2,917,000 | 2,951,000 |
| Cash ratio | 0.08 | 0.15 | 0.11 | 0.13 | 0.11 | 0.13 | 0.10 | 0.08 | 0.09 | 0.15 | 0.07 | 0.11 | 0.13 | 0.13 | 0.17 | 0.20 | 0.27 | 0.28 | 0.21 | 0.16 |
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 has fluctuated over the past few years, ranging from 0.07 to 0.28. The ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio indicates a greater ability to pay off current liabilities using cash on hand.
Looking at the trend, we can observe that the cash ratio increased from March 2020 to September 2020, reaching its peak at 0.28. However, it then started to decline gradually, reaching a low of 0.07 in June 2022. Subsequently, there were fluctuations in the ratio, with some periods showing slight improvements but remaining relatively low overall.
The decreasing trend in the cash ratio could be a concern as it suggests that the company may have less liquidity to meet its short-term obligations in recent periods. Management may need to closely monitor and manage their cash position to ensure they can cover their current liabilities comfortably.
Peer comparison
Dec 31, 2024