Whirlpool Corporation (WHR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,570,000 | 1,958,000 | 3,044,000 | 2,924,000 | 1,952,000 |
| Short-term investments | US$ in thousands | — | 42,000 | — | — | — |
| Total current liabilities | US$ in thousands | 6,948,000 | 5,931,000 | 8,510,000 | 8,330,000 | 8,369,000 |
| Cash ratio | 0.23 | 0.34 | 0.36 | 0.35 | 0.23 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,570,000K
+ $—K)
÷ $6,948,000K
= 0.23
The cash ratio of Whirlpool Corp. has fluctuated over the past five years, ranging from 0.33 in 2019 to 0.46 in 2021. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off short-term obligations.
In 2021, Whirlpool Corp. had the highest cash ratio of 0.46, suggesting that the company had sufficient cash on hand to cover 46% of its short-term liabilities. This could indicate a healthy liquidity position and financial stability. However, in 2019, the cash ratio was lower at 0.33, signaling a comparatively lower ability to meet short-term obligations with available cash.
Overall, the cash ratio of Whirlpool Corp. has shown some variability over the years, but the company has generally maintained a reasonable level of liquidity to cover its short-term obligations. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to manage its short-term financial commitments effectively.
Peer comparison
Dec 31, 2023