Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Corning Inc., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.67 | 1.44 | 1.59 | 2.12 | 2.12 | |
| Quick ratio | 0.78 | 0.66 | 0.86 | 1.28 | 1.21 | |
| Cash ratio | 0.41 | 0.32 | 0.45 | 0.71 | 0.69 |
Based on: 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), 10-K (reporting date: 2019-12-31).
- Current Ratio
- The current ratio shows a declining trend from 2.12 in 2019 and 2020 to 1.59 in 2021 and further to 1.44 in 2022, followed by a slight recovery to 1.67 in 2023. This indicates a reduction in short-term liquidity over the period, with some improvement in the last year but remaining below the initial levels.
- Quick Ratio
- The quick ratio declines more sharply from 1.21 in 2019, peaking slightly at 1.28 in 2020, then falling significantly to 0.86 in 2021, continuing down to 0.66 in 2022, and modestly recovering to 0.78 in 2023. This suggests a decreasing ability to meet immediate liabilities without relying on inventory sales, with partial recovery in the final year.
- Cash Ratio
- The cash ratio decreases steadily from 0.69 in 2019 to 0.71 in 2020, then drops notably to 0.45 in 2021, further declining to 0.32 in 2022 and slightly rising to 0.41 in 2023. This reflects a diminished availability of cash and cash equivalents relative to current liabilities, showing a subdued liquidity position in terms of cash resources.
Current Ratio
Corning Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 7,212) | 7,453) | 7,659) | 8,004) | 7,463) | |
| Current liabilities | 4,319) | 5,175) | 4,806) | 3,767) | 3,521) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.67 | 1.44 | 1.59 | 2.12 | 2.12 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Apple Inc. | 0.99 | 0.88 | 1.07 | 1.36 | 1.54 | |
| Arista Networks Inc. | 4.39 | 4.29 | 4.34 | 4.99 | — | |
| Cisco Systems Inc. | 1.38 | 1.43 | 1.49 | 1.72 | 1.51 | |
| Dell Technologies Inc. | 0.82 | 0.80 | 0.80 | 0.70 | — | |
| Super Micro Computer Inc. | 2.31 | 1.91 | 1.93 | 2.25 | 2.35 | |
| Current Ratio, Sector | ||||||
| Technology Hardware & Equipment | 1.04 | 0.95 | 1.08 | 1.24 | — | |
| Current Ratio, Industry | ||||||
| Information Technology | 1.41 | 1.37 | 1.55 | 1.71 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,212 ÷ 4,319 = 1.67
2 Click competitor name to see calculations.
- Current Assets
- There is a slight fluctuation in current assets over the five-year period. Starting at 7,463 million US dollars in 2019, current assets increased to 8,004 million in 2020, showing moderate growth. However, from 2020 onwards, a gradual decline is observed, dropping to 7,659 million in 2021, then to 7,453 million in 2022, and further decreasing to 7,212 million in 2023. This indicates a downward trend in current assets after the peak in 2020.
- Current Liabilities
- Current liabilities display an overall increasing pattern from 2019 to 2022, starting at 3,521 million US dollars in 2019 and rising steadily to 3,767 million in 2020, 4,806 million in 2021, and peaking at 5,175 million in 2022. In 2023, there is a notable decline to 4,319 million, indicating some reduction in short-term obligations after four consecutive years of increases.
- Current Ratio
- The current ratio remains stable at 2.12 in both 2019 and 2020, reflecting a strong liquidity position during this period. However, from 2021 the ratio decreases significantly, reaching 1.59 in 2021 and further declining to 1.44 in 2022, suggesting a weakening short-term liquidity. In 2023, there is a partial recovery to 1.67, indicating an improvement but still lower than the initial levels observed in 2019 and 2020.
- Overall Insight
- The data indicates a peak in the liquidity position around 2020, followed by a decline in current assets and current ratio, alongside rising current liabilities until 2022. The reduction in current liabilities and the slight improvement in the current ratio in 2023 may suggest efforts to strengthen liquidity. Despite this recent improvement, the current ratio remains below the levels reported at the beginning of the period, implying a cautious approach to managing short-term financial obligations.
Quick Ratio
Corning Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 1,779) | 1,671) | 2,148) | 2,672) | 2,434) | |
| Trade accounts receivable, net of doubtful accounts | 1,572) | 1,721) | 2,004) | 2,133) | 1,836) | |
| Total quick assets | 3,351) | 3,392) | 4,152) | 4,805) | 4,270) | |
| Current liabilities | 4,319) | 5,175) | 4,806) | 3,767) | 3,521) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.78 | 0.66 | 0.86 | 1.28 | 1.21 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Apple Inc. | 0.84 | 0.71 | 0.91 | 1.22 | 1.38 | |
| Arista Networks Inc. | 3.16 | 3.05 | 3.54 | 4.25 | — | |
| Cisco Systems Inc. | 1.13 | 1.16 | 1.32 | 1.58 | 1.39 | |
| Dell Technologies Inc. | 0.52 | 0.49 | 0.59 | 0.51 | — | |
| Super Micro Computer Inc. | 1.16 | 0.75 | 0.72 | 0.87 | 1.06 | |
| Quick Ratio, Sector | ||||||
| Technology Hardware & Equipment | 0.83 | 0.72 | 0.89 | 1.08 | — | |
| Quick Ratio, Industry | ||||||
| Information Technology | 1.12 | 1.09 | 1.30 | 1.47 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,351 ÷ 4,319 = 0.78
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets of the company exhibited a fluctuating trend over the five-year period. Initially, there was an increase from approximately 4,270 million USD in 2019 to 4,805 million USD in 2020. However, this was followed by a decline in subsequent years, dropping to 4,152 million USD in 2021, then further decreasing to 3,392 million USD in 2022, and slightly decreasing again to 3,351 million USD in 2023. Overall, the total quick assets decreased by approximately 21.5% from 2019 to 2023.
- Current liabilities
- Current liabilities showed an increasing trend from 2019 through 2022, rising from 3,521 million USD in 2019 to reach a peak of 5,175 million USD in 2022. In 2023, however, current liabilities decreased to 4,319 million USD. This represents an overall increase of about 22.7% over the five year period, with a notable peak in 2022 before a reduction in 2023.
- Quick ratio
- The quick ratio indicated a declining trend between 2019 and 2022, decreasing from 1.21 in 2019 to 0.66 in 2022. This decline suggests a deterioration in the company's short-term liquidity during this timeframe. In 2023, there was a modest improvement to 0.78, although the ratio remained below 1, indicating that quick assets continued to be insufficient to cover current liabilities at the end of the period.
- Summary
- The data shows that while total quick assets initially increased in 2020, they consistently declined in subsequent years. Meanwhile, current liabilities rose substantially through 2022 before falling back somewhat in 2023. The quick ratio mirrored these trends, declining significantly to a level below 1.0, which points to potential liquidity pressure. The slight recovery in the quick ratio in 2023 suggests some improvement but still indicates a cautious liquidity position relative to the company’s current obligations.
Cash Ratio
Corning Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 1,779) | 1,671) | 2,148) | 2,672) | 2,434) | |
| Total cash assets | 1,779) | 1,671) | 2,148) | 2,672) | 2,434) | |
| Current liabilities | 4,319) | 5,175) | 4,806) | 3,767) | 3,521) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.41 | 0.32 | 0.45 | 0.71 | 0.69 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Apple Inc. | 0.42 | 0.31 | 0.50 | 0.86 | 0.95 | |
| Arista Networks Inc. | 2.62 | 2.34 | 3.07 | 3.74 | — | |
| Cisco Systems Inc. | 0.84 | 0.75 | 0.93 | 1.16 | 1.05 | |
| Dell Technologies Inc. | 0.17 | 0.17 | 0.26 | 0.18 | — | |
| Super Micro Computer Inc. | 0.32 | 0.18 | 0.24 | 0.30 | 0.41 | |
| Cash Ratio, Sector | ||||||
| Technology Hardware & Equipment | 0.44 | 0.34 | 0.50 | 0.72 | — | |
| Cash Ratio, Industry | ||||||
| Information Technology | 0.71 | 0.67 | 0.89 | 1.06 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,779 ÷ 4,319 = 0.41
2 Click competitor name to see calculations.
The financial data over the five-year period reveals several notable trends regarding liquidity and current obligations.
- Total Cash Assets
- The total cash assets showed an initial increase from 2,434 million US dollars at the end of 2019 to 2,672 million US dollars at the end of 2020. However, from 2020 onward, there was a consistent decline until 2022, reaching 1,671 million US dollars. By the end of 2023, there was a slight recovery to 1,779 million US dollars, though the value remained significantly lower than the peak in 2020.
- Current Liabilities
- Current liabilities increased substantially over the observed period. Starting at 3,521 million US dollars in 2019, these liabilities rose each year until peaking at 5,175 million US dollars in 2022. In 2023, current liabilities decreased to 4,319 million US dollars, indicating some reduction in short-term obligations compared to the previous year but still above the levels seen in 2019 and 2020.
- Cash Ratio
- The cash ratio followed a downward trajectory from 0.69 in 2019 to a low of 0.32 in 2022. This ratio reflects a decline in the company's ability to cover current liabilities with cash assets alone. In 2023, the cash ratio modestly improved to 0.41 but remained well below the levels observed in the initial years of the period.
Overall, the data indicates a period of decreasing cash reserves relative to increasing current liabilities, resulting in a reduced cash ratio and suggesting a weakening liquidity position over the majority of the timeframe. The slight improvements in total cash assets and cash ratio in the final year may reflect early signs of better liquidity management or financial stabilization but have not yet returned to earlier levels of liquidity strength.