Packaging Corp of America (PKG)
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 | 648,000 | 573,200 | 477,100 | 367,700 | 320,000 | 648,700 | 667,300 | 628,600 | 618,700 | 1,702,900 | 972,200 | 983,400 | 974,600 | 949,100 | 853,300 | 764,000 | 679,500 | 738,300 | 569,400 | 442,400 |
| Short-term investments | US$ in thousands | 493,500 | 104,000 | 101,900 | 95,600 | 85,200 | 77,700 | 82,300 | 81,300 | 86,100 | 88,300 | 101,700 | 102,500 | 105,600 | 101,200 | 86,900 | 92,300 | 87,900 | — | — | — |
| Total current liabilities | US$ in thousands | 1,265,700 | 1,278,900 | 797,700 | 828,900 | 875,500 | 963,400 | 972,900 | 967,900 | 884,800 | 1,644,400 | 816,800 | 805,800 | 782,600 | 775,400 | 683,600 | 744,600 | 723,800 | 770,700 | 729,600 | 740,700 |
| Cash ratio | 0.90 | 0.53 | 0.73 | 0.56 | 0.46 | 0.75 | 0.77 | 0.73 | 0.80 | 1.09 | 1.31 | 1.35 | 1.38 | 1.35 | 1.38 | 1.15 | 1.06 | 0.96 | 0.78 | 0.60 |
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
The cash ratio of Packaging Corp Of America has shown some fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In Q4 2023, the cash ratio was at its highest at 0.95, indicating that the company had $0.95 in cash and cash equivalents for every $1 of short-term liabilities. This suggests a strong liquidity position for the company at the end of 2023.
However, this high ratio in Q4 2023 contrasts with the lower ratios observed in the previous quarters, such as 0.58 in Q3 2023 and 0.53 in Q4 2022. These lower ratios may indicate a weaker liquidity position during those periods, potentially raising concerns about the company's ability to meet its short-term obligations solely with cash on hand.
Overall, the fluctuating trend in the cash ratio of Packaging Corp Of America suggests varying levels of liquidity and highlights the importance of closely monitoring the company's cash position to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023