Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Current ratio | ||||||
Quick ratio | ||||||
Cash ratio |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of liquidity ratios over the five-year period reveals a consistent downward trend across all key measures, indicating a gradual decrease in short-term financial strength.
- Current Ratio
- The current ratio decreased from 1.32 in 2020 to 1.03 by 2024. This steady decline suggests a reduction in the company's ability to cover current liabilities with current assets, indicating a tightening liquidity position over time.
- Quick Ratio
- The quick ratio also showed a downward trend, falling from 0.96 in 2020 to 0.72 in 2024. This decline is more pronounced than the current ratio, reflecting a decrease in liquid assets excluding inventory. It suggests that the company has become less equipped to meet short-term obligations without relying on inventory liquidation.
- Cash Ratio
- Similarly, the cash ratio dropped from 0.75 in 2020 to 0.58 in 2024. This indicates a decline in the company's most liquid assets available to cover current liabilities, pointing to reduced immediate financial flexibility.
Overall, the decreasing trends in all three liquidity indicators suggest a gradual erosion in the company's short-term financial safety margin, which may warrant further attention to working capital management and cash flow adequacy.
Current Ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Current assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Current ratio1 | ||||||
Benchmarks | ||||||
Current Ratio, Competitors2 | ||||||
Mondelēz International Inc. | ||||||
PepsiCo Inc. | ||||||
Philip Morris International Inc. | ||||||
Current Ratio, Sector | ||||||
Food, Beverage & Tobacco | ||||||
Current Ratio, Industry | ||||||
Consumer Staples |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets show a general upward trend from 2020 to 2023, increasing from $19,240 million to $26,732 million, indicating growth in the company's short-term assets available for use. However, in 2024, there is a slight decline to $25,997 million, which may suggest a reduction in liquidity or asset reallocation.
- Current Liabilities
- Current liabilities have steadily increased every year from $14,601 million in 2020 to $25,249 million in 2024. This consistent rise indicates a growing amount of short-term obligations, which could impact liquidity if not matched by asset growth.
- Current Ratio
- The current ratio has been declining over the period, starting at 1.32 in 2020 and falling to 1.03 in 2024. This shrinking ratio suggests that current liabilities are growing at a faster pace relative to current assets, raising concerns over the company's short-term financial health and ability to cover obligations.
Quick Ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cash and cash equivalents | ||||||
Short-term investments | ||||||
Marketable securities | ||||||
Trade accounts receivable, less allowances | ||||||
Total quick assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Quick ratio1 | ||||||
Benchmarks | ||||||
Quick Ratio, Competitors2 | ||||||
Mondelēz International Inc. | ||||||
PepsiCo Inc. | ||||||
Philip Morris International Inc. | ||||||
Quick Ratio, Sector | ||||||
Food, Beverage & Tobacco | ||||||
Quick Ratio, Industry | ||||||
Consumer Staples |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets demonstrated an overall upward trend from 2020 to 2024. Starting at $14,058 million in 2020, the figure increased to $18,140 million by 2024. Despite a slight decline in 2022 compared to 2021, the general movement over the five-year span indicates growth in liquid assets promptly available to cover short-term liabilities.
- Current liabilities
- Current liabilities showed a steady increase throughout the period. Beginning at $14,601 million in 2020, the liabilities rose consistently each year, reaching $25,249 million by the end of 2024. This upward trajectory suggests increasing short-term obligations, which may impact liquidity and working capital management considerations.
- Quick ratio
- The quick ratio exhibited a declining trend over the five years, moving from 0.96 in 2020 to 0.72 in both 2023 and 2024. This decline, despite the rise in quick assets, reflects the proportionally larger increase in current liabilities. The ratio falling below 1.0 indicates that quick assets were insufficient to fully cover current liabilities, implying a decrease in short-term financial safety and liquidity position.
Cash Ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cash and cash equivalents | ||||||
Short-term investments | ||||||
Marketable securities | ||||||
Total cash assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Cash ratio1 | ||||||
Benchmarks | ||||||
Cash Ratio, Competitors2 | ||||||
Mondelēz International Inc. | ||||||
PepsiCo Inc. | ||||||
Philip Morris International Inc. | ||||||
Cash Ratio, Sector | ||||||
Food, Beverage & Tobacco | ||||||
Cash Ratio, Industry | ||||||
Consumer Staples |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets displayed an overall upward trend over the five-year period. Starting at $10,914 million in 2020, the amount increased to $14,571 million by the end of 2024. Notably, there was a slight decline between 2021 and 2022, but the figures recovered and continued to grow in subsequent years.
- Current liabilities
- Current liabilities exhibited a consistent and significant increase year over year. From $14,601 million in 2020, the liabilities rose steadily to reach $25,249 million in 2024, representing a considerable growth in short-term obligations.
- Cash ratio
- The cash ratio declined consistently from 0.75 in 2020 to 0.58 in 2024. This steady decrease suggests a weakening liquidity position, indicating that the company holds less cash relative to its current liabilities over time. Despite the growth in cash assets, the increase in current liabilities has outpaced cash holdings, resulting in a lower cash ratio.