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