Packaging Corp of America (PKG)
Cash ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 648,000 | 320,000 | 618,700 | 974,600 | 679,500 |
Short-term investments | US$ in thousands | 493,500 | 85,200 | 86,100 | 105,600 | 87,900 |
Total current liabilities | US$ in thousands | 1,265,700 | 875,500 | 884,800 | 782,600 | 723,800 |
Cash ratio | 0.90 | 0.46 | 0.80 | 1.38 | 1.06 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($648,000K
+ $493,500K)
÷ $1,265,700K
= 0.90
Packaging Corp Of America's cash ratio has exhibited fluctuations over the past five years. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio implies a better ability to meet short-term obligations without relying on external funding sources.
In 2023, the cash ratio stands at 0.95, indicating that the company has $0.95 in cash and cash equivalents for every dollar of current liabilities. This represents an improvement compared to the previous year.
In 2022, the cash ratio was 0.53, suggesting a weaker liquidity position, as the company had $0.53 in cash and cash equivalents for every dollar of current liabilities.
The cash ratio increased to 0.85 in 2021, reflecting an improvement in the liquidity position compared to 2022 but still below the levels seen in 2020 and 2019.
In 2020, the cash ratio was 1.44, indicating a strong liquidity position, with the company having $1.44 in cash and cash equivalents for every dollar of current liabilities.
In 2019, the cash ratio was 1.12, also indicating a favorable liquidity position, with the company having $1.12 in cash and cash equivalents for every dollar of current liabilities.
Overall, while there have been fluctuations in Packaging Corp Of America's cash ratio over the past five years, the company generally maintained a strong liquidity position, with the ability to cover its short-term obligations with its cash reserves. The variations in the cash ratio highlight changes in the company's cash management practices and its ability to generate and preserve cash.
Peer comparison
Dec 31, 2023