PPG Industries Inc (PPG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,514,000 | 1,099,000 | 1,005,000 | 1,826,000 | 1,216,000 |
| Short-term investments | US$ in thousands | 75,000 | 55,000 | 67,000 | 96,000 | 57,000 |
| Total current liabilities | US$ in thousands | 5,054,000 | 4,721,000 | 4,766,000 | 4,831,000 | 4,375,000 |
| Cash ratio | 0.31 | 0.24 | 0.22 | 0.40 | 0.29 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,514,000K
+ $75,000K)
÷ $5,054,000K
= 0.31
The cash ratio of PPG Industries, Inc. has fluctuated over the past five years. The cash ratio represents the company's ability to cover its short-term liabilities using its cash and cash equivalents.
In 2023, the cash ratio improved to 0.40 compared to 0.34 in 2022 and 0.30 in 2021. This indicates that PPG Industries had a higher proportion of cash and cash equivalents relative to its short-term obligations in 2023.
The cash ratio was highest in 2020 at 0.48, signaling a strong ability to meet short-term liabilities with available cash. Although the ratio decreased in 2021 and 2022, it remained relatively stable.
Overall, the trend in the cash ratio suggests that PPG Industries, Inc. has maintained a prudent level of liquidity over the years, ensuring it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023