Packaging Corp of America (PKG)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 685,000 | 676,600 | 613,600 | 692,400 | 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 |
| Short-term investments | US$ in thousands | 102,000 | 95,000 | 490,800 | 492,300 | 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 |
| Total current liabilities | US$ in thousands | 1,001,600 | 1,100,500 | 1,431,500 | 1,400,300 | 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 |
| Cash ratio | 0.79 | 0.70 | 0.77 | 0.85 | 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 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($685,000K
+ $102,000K)
÷ $1,001,600K
= 0.79
Packaging Corp of America's cash ratio has shown fluctuations over the past few years, ranging from a high of 1.38 in June 2020 to a low of 0.46 in December 2022. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
In general, Packaging Corp of America maintained a cash ratio above 1.0 from March 2020 to September 2021, signaling a healthy liquidity position during that period. However, the cash ratio declined below 1.0 starting from December 2021, indicating that the company may be less capable of covering its short-term liabilities purely with cash and cash equivalents.
The decreasing trend in the cash ratio from December 2021 to December 2024 suggests a potential liquidity challenge for Packaging Corp of America. It is important for the company to closely monitor its cash position and liquidity management to ensure it can meet its financial obligations effectively. Further analysis of the company's cash flow and working capital management may provide additional insights into its liquidity position.
Peer comparison
Dec 31, 2024