Newell Brands Inc (NWL)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 198,000 | 332,000 | 287,000 | 440,000 | 981,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,437,000 | 2,897,000 | 3,078,000 | 3,317,000 | 3,621,000 |
| Quick ratio | 0.08 | 0.11 | 0.09 | 0.13 | 0.27 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($198,000K
+ $—K
+ $—K)
÷ $2,437,000K
= 0.08
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. In the case of Newell Brands Inc, the quick ratio has shown a declining trend over the past five years.
As of December 31, 2020, the quick ratio was 0.27, indicating that for every dollar of current liabilities, the company had $0.27 in quick assets to cover these obligations. However, by December 31, 2021, the quick ratio decreased to 0.13, suggesting a significant decrease in the company's ability to meet its short-term liabilities using its quick assets.
The decline in the quick ratio continued in subsequent years, reaching 0.09 by December 31, 2022, 0.11 by December 31, 2023, and dropping further to 0.08 by December 31, 2024. These decreasing values indicate a potential worsening liquidity position for Newell Brands Inc, as the company may be facing challenges in meeting its short-term financial obligations with its readily available assets.
Overall, the downward trend in the quick ratio for Newell Brands Inc suggests a weakening ability to cover its short-term liabilities with its quick assets, which may raise concerns about the company's liquidity and financial health. It is important for investors and stakeholders to closely monitor this ratio to assess the company's liquidity risk and financial stability.
Peer comparison
Dec 31, 2024