Whirlpool Corporation (WHR)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,570,000 | 1,123,000 | 1,309,000 | 1,359,000 | 1,958,000 | 1,794,000 | 1,642,000 | 2,114,000 | 3,044,000 | 2,875,000 | 2,968,000 | 2,447,000 | 2,924,000 | 3,528,000 | 2,546,000 | 2,837,000 | 1,952,000 | 993,000 | 1,178,000 | 1,163,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 42,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,948,000 | 7,023,000 | 7,087,000 | 5,982,000 | 5,931,000 | 6,809,000 | 7,592,000 | 8,285,000 | 8,510,000 | 8,291,000 | 7,832,000 | 8,011,000 | 8,330,000 | 9,105,000 | 7,725,000 | 8,576,000 | 8,369,000 | 8,500,000 | 10,094,000 | 9,878,000 |
| Cash ratio | 0.23 | 0.16 | 0.18 | 0.23 | 0.34 | 0.26 | 0.22 | 0.26 | 0.36 | 0.35 | 0.38 | 0.31 | 0.35 | 0.39 | 0.33 | 0.33 | 0.23 | 0.12 | 0.12 | 0.12 |
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 eight quarters, ranging from 0.25 to 0.44. The cash ratio measures the company's ability to cover its short-term obligations with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term liabilities without relying on external sources of finance.
In Q4 2022, Whirlpool Corp. had the highest cash ratio of 0.44, indicating a relatively strong liquidity position at that time. However, the cash ratio declined in subsequent quarters, reaching its lowest point of 0.25 in Q3 2023. This downward trend suggests a decrease in the company's ability to cover its short-term obligations with its available cash.
Overall, the fluctuation in Whirlpool Corp.'s cash ratio indicates varying levels of liquidity and financial health over the past two years. It is important for the company to maintain a balance between investing excess cash and ensuring sufficient liquidity to meet short-term obligations. Further analysis of the company's cash management practices and cash flow trends may provide more insights into its financial stability and efficiency in managing short-term obligations.
Peer comparison
Dec 31, 2023