Owens Corning Inc (OC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 361,000 | 1,615,000 | 1,099,000 | 959,000 | 717,000 |
| Short-term investments | US$ in thousands | — | — | — | 11,000 | — |
| Total current liabilities | US$ in thousands | 2,297,000 | 2,324,000 | 2,104,000 | 1,697,000 | 1,440,000 |
| Cash ratio | 0.16 | 0.69 | 0.52 | 0.57 | 0.50 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($361,000K
+ $—K)
÷ $2,297,000K
= 0.16
The cash ratio of Owens Corning Inc has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, started at 0.50 in 2020 and increased to 0.57 in 2021.
However, there was a slight decrease in the cash ratio to 0.52 in 2022 before a notable improvement to 0.69 in 2023. This increase indicates that Owens Corning Inc had a higher proportion of cash and cash equivalents compared to its short-term liabilities in 2023.
However, there was a significant decline in the cash ratio to 0.16 in 2024, which may imply a decreased ability to cover short-term obligations with cash alone. It would be essential to further investigate the reasons behind this sharp decrease in the cash ratio in 2024 to assess the company's liquidity position effectively.