PPG Industries Inc (PPG)
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 | 1,270,000 | 1,251,000 | 1,131,000 | 1,181,000 | 1,514,000 | 1,218,000 | 1,228,000 | 1,426,000 | 1,099,000 | 1,029,000 | 931,000 | 960,000 | 1,005,000 | 1,216,000 | 1,195,000 | 1,808,000 | 1,826,000 | 2,008,000 | 2,252,000 | 1,886,000 |
| Short-term investments | US$ in thousands | 88,000 | 71,000 | 61,000 | 54,000 | 75,000 | 64,000 | 68,000 | 56,000 | 55,000 | 60,000 | 61,000 | 73,000 | 67,000 | 88,000 | 110,000 | 120,000 | 96,000 | 87,000 | 45,000 | 50,000 |
| Total current liabilities | US$ in thousands | 5,014,000 | 4,996,000 | 5,225,000 | 4,943,000 | 5,054,000 | 5,100,000 | 5,416,000 | 4,868,000 | 4,721,000 | 4,926,000 | 5,165,000 | 5,172,000 | 4,745,000 | 5,463,000 | 5,488,000 | 5,120,000 | 4,816,000 | 4,613,000 | 5,234,000 | 5,195,000 |
| Cash ratio | 0.27 | 0.26 | 0.23 | 0.25 | 0.31 | 0.25 | 0.24 | 0.30 | 0.24 | 0.22 | 0.19 | 0.20 | 0.23 | 0.24 | 0.24 | 0.38 | 0.40 | 0.45 | 0.44 | 0.37 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,270,000K
+ $88,000K)
÷ $5,014,000K
= 0.27
The cash ratio is a liquidity ratio that measures a company's ability to cover its current liabilities with its cash and cash equivalents. In the case of PPG Industries Inc, the cash ratio has shown some fluctuation over the past few years.
From March 31, 2020, to December 31, 2024, the cash ratio for PPG Industries Inc ranged from a low of 0.19 to a high of 0.45. This indicates that the company has enough cash and cash equivalents to cover only 19% to 45% of its current liabilities during this period.
The cash ratio generally indicates the short-term liquidity position of a company. A higher cash ratio suggests that a company has a greater ability to meet its short-term liabilities using its cash reserves. Conversely, a lower cash ratio may indicate potential liquidity issues and the need to manage cash flow more effectively.
In the case of PPG Industries Inc, the cash ratio fluctuated within a relatively narrow range, indicating a fairly consistent level of liquidity over the period analyzed. However, the downward trend observed in the recent quarters may warrant further investigation to understand the reasons behind the decrease in liquidity.
Peer comparison
Dec 31, 2024