Smurfit WestRock plc (SW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 890,000 | 777,000 | 869,000 | 891,000 |
| Short-term investments | US$ in thousands | — | — | -131,000 | — |
| Total current liabilities | US$ in thousands | 2,694,000 | 3,027,000 | 2,827,000 | 2,230,000 |
| Cash ratio | 0.33 | 0.26 | 0.26 | 0.40 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($890,000K
+ $—K)
÷ $2,694,000K
= 0.33
The cash ratio for Smurfit WestRock plc has fluctuated over the past four years. In 2023, the cash ratio stands at 0.33, indicating that the company has $0.33 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement from 2022 when the cash ratio was 0.26. However, the cash ratio in 2023 remains lower than it was in 2020, when it stood at 0.40.
The trend suggests that the company's liquidity position has been somewhat volatile in recent years, with fluctuations in the amount of cash available relative to current liabilities. It is important for stakeholders to monitor changes in the cash ratio to assess the company's ability to meet its short-term obligations using its available cash resources. Further analysis of the company's cash management practices and overall liquidity position may provide additional insights into the factors driving these fluctuations in the cash ratio.
Peer comparison
Dec 31, 2023