ODP Corp (ODP)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 166,000 | 392,000 | 403,000 | 514,000 | 729,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,543,000 | 1,693,000 | 1,859,000 | 2,265,000 | 2,093,000 |
| Cash ratio | 0.11 | 0.23 | 0.22 | 0.23 | 0.35 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($166,000K
+ $—K)
÷ $1,543,000K
= 0.11
The cash ratio of ODP Corp has shown a declining trend over the past five years. Starting at 0.35 in December 31, 2020, the ratio decreased to 0.11 by December 31, 2024. This indicates that the company's ability to cover its current liabilities with its available cash and cash equivalents has weakened over the period. A low cash ratio may suggest potential liquidity challenges for the company in meeting its short-term obligations without relying on external funding sources. Management should closely monitor and assess the company's cash management strategies to improve liquidity and financial health.
Peer comparison
Dec 31, 2024