Smurfit WestRock plc (SW)
Cash ratio
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Jun 30, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 27 | 0 | 890,000 | 615,000 | 777,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 12 | — | 2,694,000 | 2,678,000 | 3,027,000 |
| Cash ratio | 2.25 | — | 0.33 | 0.23 | 0.26 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($27K
+ $—K)
÷ $12K
= 2.25
The cash ratio of Smurfit WestRock plc has exhibited fluctuations over the past few reporting periods. As of June 30, 2024, the cash ratio stands at 2.25, indicating that the company has $2.25 in cash and cash equivalents for every $1 of current liabilities. This represents a significant increase compared to the previous periods.
In the preceding quarter, the cash ratio was not available, suggesting that more detailed data may be needed to understand the company's liquidity position during that period. However, looking back to December 31, 2023, the cash ratio was 0.33, signaling a lower liquidity position as the company only had $0.33 in cash and cash equivalents for every $1 of current liabilities.
Comparing the current cash ratio to the same period in the prior year, June 30, 2023, there has been a substantial improvement from 0.23 to 2.25. This indicates that Smurfit WestRock plc has significantly strengthened its liquidity position over the past year.
Further back, on December 31, 2022, the cash ratio was 0.26, showing a slight improvement in liquidity compared to the end of 2023 but still lower than the most recent reporting period.
Overall, the upward trend in the cash ratio suggests that Smurfit WestRock plc has bolstered its ability to cover short-term obligations with cash and cash equivalents, enhancing its liquidity position and potentially reducing financial risk. It would be essential to continue monitoring the company's cash ratio in future periods to assess its ongoing liquidity strength.
Peer comparison
Jun 30, 2024