Owens Corning Inc (OC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 361,000 | 1,615,000 | 1,099,000 | 959,000 | 717,000 |
| Short-term investments | US$ in thousands | — | — | — | 11,000 | — |
| Receivables | US$ in thousands | 1,244,000 | 987,000 | 961,000 | 939,000 | 919,000 |
| Total current liabilities | US$ in thousands | 2,297,000 | 2,324,000 | 2,104,000 | 1,697,000 | 1,440,000 |
| Quick ratio | 0.70 | 1.12 | 0.98 | 1.12 | 1.14 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($361,000K
+ $—K
+ $1,244,000K)
÷ $2,297,000K
= 0.70
The quick ratio of Owens Corning Inc, a measure of its ability to meet short-term liabilities with its most liquid assets, has exhibited fluctuations over the years. As of December 31, 2020, the quick ratio stood at 1.14, indicating that the company had $1.14 in liquid assets available to cover each dollar of current liabilities.
By December 31, 2021, the quick ratio slightly decreased to 1.12, still reflecting a healthy liquidity position. However, there was a notable decline by December 31, 2022, with the quick ratio dropping to 0.98. This decrease may suggest potential liquidity challenges as the company may have had fewer liquid assets relative to its current liabilities.
The quick ratio rebounded to 1.12 by December 31, 2023, signaling an improvement in liquidity compared to the previous year. Nonetheless, there was a significant decrease in liquidity by December 31, 2024, as the quick ratio plummeted to 0.70. This sharp decline could indicate a potential strain on the company's ability to meet its short-term obligations with its most liquid assets.
In conclusion, the trend in Owens Corning Inc's quick ratio reflects fluctuations in liquidity levels over the years, with periods of strength and weakness. It is important for the company to closely monitor and manage its liquidity position to ensure it can effectively meet its short-term financial obligations.