Newell Brands Inc (NWL)
Current ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,354,000 | 3,748,000 | 3,839,000 | 4,055,000 | 4,052,000 | 5,148,000 | 4,757,000 | 4,411,000 | 4,352,000 | 4,616,000 | 4,655,000 | 4,385,000 | 4,628,000 | 4,704,000 | 4,286,000 | 3,917,000 | 4,110,000 | 5,468,400 | 7,061,700 | 7,516,100 |
| Total current liabilities | US$ in thousands | 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 | 2,978,000 | 3,684,200 | 3,135,800 | 3,551,600 |
| Current ratio | 1.16 | 1.24 | 1.25 | 1.23 | 1.32 | 1.25 | 1.03 | 1.39 | 1.31 | 1.24 | 1.23 | 1.30 | 1.28 | 1.51 | 1.47 | 1.33 | 1.38 | 1.48 | 2.25 | 2.12 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,354,000K ÷ $2,897,000K
= 1.16
Newell Brands Inc's current ratio has fluctuated over the past eight quarters, ranging from a low of 1.03 in Q2 2022 to a high of 1.39 in Q1 2022. The current ratio measures the company's ability to meet its short-term obligations with its current assets. Generally, a current ratio above 1 indicates that a company can cover its short-term liabilities with its current assets.
Looking at the trend, we observe that there was a gradual decline from Q1 2022 to Q3 2022, where the current ratio decreased from 1.39 to 1.03. This might indicate potential liquidity issues or difficulties in meeting short-term obligations during that period. However, the company saw an improvement in its current ratio in the following quarters, reaching 1.25 in Q3 2023.
While the current ratio has shown some variability, it is important to consider industry norms and compare Newell Brands Inc's current ratio to its competitors or its historical performance to get a better understanding of its liquidity position. Investors and stakeholders should monitor these ratios over time to assess the company's financial health and ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2023