Newell Brands Inc (NWL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 1,195,000 | 1,250,000 | 1,500,000 | 1,678,000 | 1,841,500 |
| Total current liabilities | US$ in thousands | 2,897,000 | 3,078,000 | 3,317,000 | 3,621,000 | 2,978,000 |
| Quick ratio | 0.53 | 0.50 | 0.59 | 0.74 | 0.74 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($332,000K
+ $12,000K
+ $1,195,000K)
÷ $2,897,000K
= 0.53
The quick ratio of Newell Brands Inc has displayed a declining trend over the past five years, decreasing from 0.84 in 2019 to 0.63 in 2023. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities using only its liquid assets.
The decreasing trend in the quick ratio could suggest potential liquidity challenges for the company, as it may have insufficient liquid assets to cover its current liabilities. It is essential for Newell Brands Inc to closely monitor its liquidity position and explore strategies to improve its quick ratio to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023