Newell Brands Inc (NWL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 349,000 | 465,400 | 624,500 | 364,100 |
| Short-term investments | US$ in thousands | 12,000 | — | — | — | 12,000 | — | — | — | 11,000 | — | — | — | 9,000 | 8,000 | 8,000 | 6,000 | 9,500 | — | 12,100 | 12,900 |
| Receivables | US$ in thousands | 1,195,000 | 1,212,000 | 1,285,000 | 1,218,000 | 1,250,000 | 1,502,000 | 1,562,000 | 1,421,000 | 1,500,000 | 1,686,000 | 1,717,000 | 1,530,000 | 1,678,000 | 1,814,000 | 1,641,000 | 1,398,000 | 1,841,500 | 1,872,800 | 1,769,000 | 1,606,100 |
| 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 |
| Quick ratio | 0.53 | 0.53 | 0.52 | 0.45 | 0.50 | 0.52 | 0.41 | 0.55 | 0.59 | 0.59 | 0.62 | 0.66 | 0.74 | 0.86 | 0.78 | 0.64 | 0.74 | 0.63 | 0.77 | 0.56 |
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 shown some fluctuations over the past eight quarters, ranging from 0.48 to 0.66. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
The ratio was relatively stable around 0.60 in the first half of 2022 before experiencing a sharp increase to 0.66 in Q2 2022. However, the quick ratio decreased in the following quarters, reaching its lowest point of 0.55 in Q1 2023. This indicates a potential decrease in the company's ability to cover its short-term liabilities without relying on inventory.
In Q4 2023, the quick ratio stood at 0.63, slightly higher than in the previous quarter but still lower than the peak in Q2 2022. This suggests that Newell Brands Inc may have improved its liquidity position compared to the previous quarter but is not as strong as it was in mid-2022.
Overall, while the quick ratio provides insight into the company's short-term liquidity, it is important to consider other financial ratios and factors to get a comprehensive view of Newell Brands Inc's financial health.
Peer comparison
Dec 31, 2023