Owens Corning Inc (OC)
Cash 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 and cash equivalents | US$ in thousands | 1,615,000 | 1,323,000 | 968,000 | 757,000 | 1,099,000 | 751,000 | 810,000 | 748,000 | 959,000 | 920,000 | 888,000 | 605,000 | 717,000 | 647,000 | 582,000 | 234,000 | 172,000 | 35,000 | 92,000 | 82,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 38,000 | 29,000 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,324,000 | 1,826,000 | 1,832,000 | 1,933,000 | 2,104,000 | 2,014,000 | 1,974,000 | 1,999,000 | 1,697,000 | 1,686,000 | 1,637,000 | 1,467,000 | 1,440,000 | 1,351,000 | 1,393,000 | 1,430,000 | 1,329,000 | 1,261,000 | 1,325,000 | 1,275,000 |
| Cash ratio | 0.69 | 0.72 | 0.53 | 0.39 | 0.52 | 0.39 | 0.43 | 0.37 | 0.57 | 0.55 | 0.54 | 0.41 | 0.50 | 0.48 | 0.42 | 0.16 | 0.13 | 0.03 | 0.07 | 0.06 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,615,000K
+ $—K)
÷ $2,324,000K
= 0.69
The cash ratio of Owens Corning over the past eight quarters has demonstrated some fluctuations. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.
In the fourth quarter of 2023, the cash ratio stood at 0.75, showing an improvement from the previous quarter's ratio of 0.78. This implies that Owens Corning had $0.75 in cash and cash equivalents for every $1 of its short-term liabilities. The company maintained a relatively strong position in terms of liquidity.
The trend over the past year shows some variability in the cash ratio, ranging from a low of 0.44 in the first quarter of 2022 to a high of 0.78 in the third quarter of 2023. The fluctuations might be attributed to various factors such as changes in operating cash flows, investment activities, or debt management by Owens Corning.
Overall, the cash ratio indicates the company's ability to manage its short-term obligations using its available cash resources. Investors and creditors may monitor this ratio to assess Owens Corning's liquidity position and its capacity to meet financial commitments in the short run.