ODP Corp (ODP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 392,000 | 403,000 | 514,000 | 729,000 | 698,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,693,000 | 1,859,000 | 2,265,000 | 2,093,000 | 3,094,000 |
| Cash ratio | 0.23 | 0.22 | 0.23 | 0.35 | 0.23 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($392,000K
+ $—K)
÷ $1,693,000K
= 0.23
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. The trend of ODP Corp's cash ratio over the past five years shows some fluctuations. In 2023, the cash ratio stands at 0.23, which indicates that for every dollar of current liabilities, the company has $0.23 of cash on hand, slightly increased from the prior year.
Looking back, in 2022 and 2021, the cash ratio was relatively stable at 0.22 and 0.23 respectively, suggesting a consistent ability to meet short-term obligations with cash reserves. However, in 2020, the cash ratio dropped to 0.35, indicating a significant increase in cash holdings compared to current liabilities.
The cash ratio of 0.23 in 2019 aligns with the ratio in 2023, showcasing a similar level of liquidity four years apart. Overall, while there have been fluctuations in ODP Corp's cash ratio over the years, the company has generally maintained a reasonable level of liquidity to cover short-term obligations with its available cash.
Peer comparison
Dec 31, 2023