Smurfit WestRock plc (SW)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 855,000 | 951,000 | 25 | 0 | 890,000 | — | 615,000 | 777,000 | — | — |
| Short-term investments | US$ in thousands | — | 99,598 | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 7,333,000 | 7,126,000 | 11 | — | 2,694,000 | — | 2,678,000 | 3,027,000 | — | — |
| Cash ratio | 0.12 | 0.15 | 2.27 | — | 0.33 | — | 0.23 | 0.26 | — | — |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($855,000K
+ $—K)
÷ $7,333,000K
= 0.12
The cash ratio of Smurfit WestRock plc provides insight into the company's ability to cover its short-term liabilities using its cash and cash equivalents. The trend analysis of the cash ratio reveals fluctuations over the selected periods:
- As of December 31, 2022, the cash ratio was 0.26, indicating that the company had 0.26 units of cash and cash equivalents for every unit of current liabilities.
- By June 30, 2023, the cash ratio decreased to 0.23, suggesting a slight decline in the company's liquidity position.
- The ratio was not available for both September 30, 2023, and March 31, 2024.
- However, by December 31, 2023, the cash ratio improved to 0.33, indicating an increase in the company's ability to cover its short-term obligations with cash.
- A significant improvement was observed by June 30, 2024, with the cash ratio soaring to 2.27, indicating a substantial increase in liquidity and the company's ability to meet its short-term liabilities.
- This improvement was not sustained, as the cash ratio dropped to 0.15 by September 30, 2024, and further decreased to 0.12 by December 31, 2024, signifying a potential decline in the company's liquidity position.
Overall, the fluctuations in the cash ratio of Smurfit WestRock plc suggest varying levels of liquidity over the reported periods, indicating the need for continued monitoring of the company's cash management strategies to ensure adequate liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2024