Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Corning Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Current Ratio Trend
- The current ratio initially showed a decline from 2.08 in March 2019 to a low of 1.59 in December 2021, indicating a gradual decrease in short-term liquidity over this period. From early 2022 through to March 2024, the ratio stabilized around the mid-1.4 to mid-1.6 range, ending at 1.67. Despite some fluctuations, the company maintained a current ratio above 1.4 consistently after 2021, suggesting that current assets were generally sufficient to cover current liabilities but with reduced buffer compared to 2019 levels.
- Quick Ratio Trend
- The quick ratio followed a broadly similar pattern to the current ratio but at lower absolute levels, reflecting a more conservative view of liquidity by excluding inventory. Starting at 1.12 in March 2019, it decreased to a trough of 0.59 in March 2023, showing a weakening ability to cover current liabilities without relying on inventory. After this low point, the quick ratio exhibited a modest recovery to 0.72 by March 2024. This suggests some improvement in liquid assets availability, but still below earlier years’ levels.
- Cash Ratio Trend
- The cash ratio showed the most volatility and lowest values among the three ratios, reflecting the strictest measure of liquidity using cash and cash equivalents only. From 0.48 in March 2019, the ratio dipped to a low of 0.24 in March 2023, suggesting limited immediate cash resources relative to current liabilities at that time. Subsequently, a moderate rebound occurred, rising to 0.33 by March 2024. Throughout the period, the cash ratio remained below 1.0, indicating reliance on other current assets beyond cash for liquidity.
- Overall Liquidity Insights
- Across the observed periods, the liquidity ratios signal a general downward trend in short-term liquidity from 2019 through early 2023, with the company maintaining lower liquidity buffers compared to the earlier years. The recent modest recoveries in quick and cash ratios could indicate efforts to strengthen liquid asset positions but they remain below pre-2020 levels. This pattern may reflect broader market conditions or operational factors affecting working capital management. The current ratio staying above 1 suggests no immediate liquidity concern but the declining trend warrants monitoring for potential impacts on financial flexibility.
Current Ratio
Corning Inc., current ratio calculation (quarterly data)
| Mar 31, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 6,971) | 7,212) | 7,298) | 7,293) | 6,877) | 7,453) | 7,804) | 7,883) | 7,861) | 7,659) | 7,679) | 7,648) | 8,103) | 8,004) | 8,058) | 6,846) | 6,946) | 7,463) | 6,156) | 6,311) | 6,349) | |||||||
| Current liabilities | 4,175) | 4,319) | 4,285) | 4,411) | 4,773) | 5,175) | 5,167) | 5,530) | 5,061) | 4,806) | 4,337) | 4,624) | 3,513) | 3,767) | 3,849) | 3,020) | 3,191) | 3,521) | 3,600) | 3,416) | 3,059) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | 1.67 | 1.67 | 1.70 | 1.65 | 1.44 | 1.44 | 1.51 | 1.43 | 1.55 | 1.59 | 1.77 | 1.65 | 2.31 | 2.12 | 2.09 | 2.27 | 2.18 | 2.12 | 1.71 | 1.85 | 2.08 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Apple Inc. | 1.07 | 0.99 | 0.98 | 0.94 | 0.94 | 0.88 | 0.86 | 0.93 | 1.04 | 1.07 | 1.06 | 1.14 | 1.16 | 1.36 | 1.47 | 1.50 | 1.60 | 1.54 | 1.50 | 1.32 | 1.30 | |||||||
| Arista Networks Inc. | 5.01 | 4.39 | 4.15 | 4.14 | 3.96 | 4.29 | 4.01 | 3.70 | 3.73 | 4.34 | 5.06 | 5.03 | 5.09 | 4.99 | 5.50 | 5.59 | 5.82 | — | — | — | — | |||||||
| Cisco Systems Inc. | 1.47 | 1.38 | 1.39 | 1.41 | 1.45 | 1.43 | 1.49 | 1.42 | 1.62 | 1.49 | 1.53 | 1.61 | 1.59 | 1.72 | 1.59 | 1.81 | 1.70 | 1.51 | 1.69 | 1.80 | 2.11 | |||||||
| Dell Technologies Inc. | 0.80 | 0.82 | 0.75 | 0.77 | 0.78 | 0.80 | 0.82 | 0.79 | 0.77 | 0.80 | 0.77 | 0.76 | 0.82 | 0.70 | 0.71 | 0.75 | 0.77 | — | — | — | — | |||||||
| Super Micro Computer Inc. | 2.23 | 2.31 | 2.49 | 2.89 | 2.13 | 1.91 | 1.79 | 1.91 | 1.85 | 1.93 | 2.10 | 2.29 | 2.51 | 2.25 | 2.10 | 2.26 | 2.41 | 2.35 | 2.40 | 2.10 | 2.02 | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,971 ÷ 4,175 = 1.67
2 Click competitor name to see calculations.
The analysis of the quarterly data reveals notable fluctuations in the current assets, current liabilities, and current ratio over the observed period.
- Current Assets
- Current assets show a varying trend with an overall moderate decline towards the end of the most recent period. The values began around $6,349 million in March 2019, peaked near $8,103 million in March 2021, and gradually decreased thereafter, reaching approximately $6,971 million by March 2024. This indicates periods of asset accumulation followed by a reduction in liquidity or short-term assets over time.
- Current Liabilities
- Current liabilities exhibit a generally increasing trend with significant variability. Starting from $3,059 million in March 2019, the liabilities rise sharply in several quarters, particularly from the start of 2021 through mid-2022, reaching a peak of about $5,530 million in June 2022. Post this peak, current liabilities show a declining pattern, falling to roughly $4,175 million by March 2024. This pattern suggests increased short-term obligations during the mid-term period followed by some degree of liability management or reduction.
- Current Ratio
- The current ratio demonstrates substantial volatility, reflecting changes in working capital management. Initially, it ranged from above 2.0 in early 2019 to a low of approximately 1.59 by December 2021. A decline in this ratio from over 2.0 to below 1.6 suggests tightening liquidity or increased liabilities relative to assets during that time. From early 2022 onwards, the current ratio stabilizes somewhat, hovering between 1.43 and 1.7, indicating moderate liquidity. The ratio slightly improved towards the end of the period, maintaining levels near 1.67 by March 2024, implying an improved ability to cover short-term liabilities with current assets compared to the low point in late 2021.
In summary, the data reflects a period marked by initial growth in current assets and heightened liabilities leading to fluctuating liquidity. The later quarters indicate efforts towards stabilizing the current ratio through managing current liabilities and maintaining current assets, achieving a more balanced liquidity position by early 2024.
Quick Ratio
Corning Inc., quick ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,365) | 1,779) | 1,639) | 1,538) | 1,146) | 1,671) | 1,630) | 1,629) | 2,016) | 2,148) | 2,212) | 2,320) | 2,868) | 2,672) | 2,514) | 2,158) | 2,025) | 2,434) | 971) | 1,178) | 1,456) | |||||||
| Trade accounts receivable, net of doubtful accounts | 1,621) | 1,572) | 1,725) | 1,674) | 1,688) | 1,721) | 1,620) | 1,786) | 1,910) | 2,004) | 2,114) | 2,057) | 1,900) | 2,133) | 2,099) | 1,712) | 1,708) | 1,836) | 2,024) | 2,103) | 1,974) | |||||||
| Total quick assets | 2,986) | 3,351) | 3,364) | 3,212) | 2,834) | 3,392) | 3,250) | 3,415) | 3,926) | 4,152) | 4,326) | 4,377) | 4,768) | 4,805) | 4,613) | 3,870) | 3,733) | 4,270) | 2,995) | 3,281) | 3,430) | |||||||
| Current liabilities | 4,175) | 4,319) | 4,285) | 4,411) | 4,773) | 5,175) | 5,167) | 5,530) | 5,061) | 4,806) | 4,337) | 4,624) | 3,513) | 3,767) | 3,849) | 3,020) | 3,191) | 3,521) | 3,600) | 3,416) | 3,059) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | 0.72 | 0.78 | 0.79 | 0.73 | 0.59 | 0.66 | 0.63 | 0.62 | 0.78 | 0.86 | 1.00 | 0.95 | 1.36 | 1.28 | 1.20 | 1.28 | 1.17 | 1.21 | 0.83 | 0.96 | 1.12 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Apple Inc. | 0.92 | 0.84 | 0.81 | 0.76 | 0.77 | 0.71 | 0.70 | 0.76 | 0.88 | 0.91 | 0.89 | 0.97 | 1.02 | 1.22 | 1.31 | 1.30 | 1.44 | 1.38 | 1.35 | 1.13 | 1.14 | |||||||
| Arista Networks Inc. | 3.67 | 3.16 | 2.86 | 2.73 | 2.65 | 3.05 | 2.89 | 2.73 | 2.97 | 3.54 | 4.23 | 4.24 | 4.33 | 4.25 | 4.73 | 4.94 | 5.22 | — | — | — | — | |||||||
| Cisco Systems Inc. | 1.18 | 1.13 | 1.11 | 1.13 | 1.16 | 1.16 | 1.23 | 1.20 | 1.41 | 1.32 | 1.35 | 1.46 | 1.45 | 1.58 | 1.46 | 1.64 | 1.54 | 1.39 | 1.56 | 1.67 | 1.97 | |||||||
| Dell Technologies Inc. | 0.48 | 0.52 | 0.41 | 0.44 | 0.44 | 0.49 | 0.60 | 0.53 | 0.55 | 0.59 | 0.55 | 0.51 | 0.56 | 0.51 | 0.50 | 0.54 | 0.55 | — | — | — | — | |||||||
| Super Micro Computer Inc. | 0.87 | 1.16 | 0.95 | 1.17 | 0.72 | 0.75 | 0.62 | 0.62 | 0.66 | 0.72 | 0.75 | 0.95 | 1.06 | 0.87 | 0.81 | 1.00 | 1.01 | 1.06 | 0.88 | 0.76 | 0.75 | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,986 ÷ 4,175 = 0.72
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibited fluctuations throughout the observed period. Starting at 3,430 million USD in the first quarter of 2019, values initially declined to a low near 2,995 million USD by the third quarter of 2019. A significant recovery followed, peaking at approximately 4,805 million USD by the end of 2020. Subsequently, the trend showed a general decline from 2021 onwards, reaching a low point of 2,834 million USD in the first quarter of 2023 before experiencing a mild recovery in mid-2023. However, by the first quarter of 2024, total quick assets had decreased again to 2,986 million USD.
- Current Liabilities
- Current liabilities demonstrated a largely upward trend over the full timeframe. Beginning at 3,059 million USD in early 2019, liabilities rose steadily with some intermittent fluctuations, reaching a high point of 5,530 million USD by the second quarter of 2022. After peaking, liabilities showed some decline but remained elevated above 4,000 million USD for the remainder of the period, ending at 4,175 million USD in the first quarter of 2024.
- Quick Ratio
- The quick ratio, an indicator of short-term liquidity, exhibited considerable variability over time. Initially above 1.0 in early 2019, it dropped below 1.0 through most of 2019, indicating tighter liquidity conditions. A rebound occurred in late 2019 through 2020, with the ratio consistently remaining above 1.0 and peaking at 1.36 in the first quarter of 2021, signaling strong liquidity. However, from mid-2021 onward, the quick ratio declined progressively, falling below 1.0 and hovering around 0.6 to 0.8 in late 2022 and into 2023. This decline suggests a reduction in liquid asset coverage relative to current liabilities. The ratio remained under 1.0 through the first quarter of 2024, ending at 0.72, reflecting relatively tighter liquidity compared to earlier periods.
- Overall Insights
- The analysis indicates that despite periodic increases in total quick assets, current liabilities grew more substantially, resulting in a weakening quick ratio in recent years. This trend points to increasingly tighter liquidity conditions, with liquid assets covering a smaller proportion of short-term obligations towards the end of the observed period. The company’s short-term financial flexibility appears to have diminished since the peak liquidity conditions seen around 2020 to early 2021.
Cash Ratio
Corning Inc., cash ratio calculation (quarterly data)
| Mar 31, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,365) | 1,779) | 1,639) | 1,538) | 1,146) | 1,671) | 1,630) | 1,629) | 2,016) | 2,148) | 2,212) | 2,320) | 2,868) | 2,672) | 2,514) | 2,158) | 2,025) | 2,434) | 971) | 1,178) | 1,456) | |||||||
| Total cash assets | 1,365) | 1,779) | 1,639) | 1,538) | 1,146) | 1,671) | 1,630) | 1,629) | 2,016) | 2,148) | 2,212) | 2,320) | 2,868) | 2,672) | 2,514) | 2,158) | 2,025) | 2,434) | 971) | 1,178) | 1,456) | |||||||
| Current liabilities | 4,175) | 4,319) | 4,285) | 4,411) | 4,773) | 5,175) | 5,167) | 5,530) | 5,061) | 4,806) | 4,337) | 4,624) | 3,513) | 3,767) | 3,849) | 3,020) | 3,191) | 3,521) | 3,600) | 3,416) | 3,059) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | 0.33 | 0.41 | 0.38 | 0.35 | 0.24 | 0.32 | 0.32 | 0.29 | 0.40 | 0.45 | 0.51 | 0.50 | 0.82 | 0.71 | 0.65 | 0.71 | 0.63 | 0.69 | 0.27 | 0.34 | 0.48 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Apple Inc. | 0.55 | 0.42 | 0.50 | 0.47 | 0.37 | 0.31 | 0.37 | 0.40 | 0.43 | 0.50 | 0.57 | 0.66 | 0.58 | 0.86 | 0.98 | 0.98 | 1.05 | 0.95 | 1.05 | 0.85 | 0.80 | |||||||
| Arista Networks Inc. | 3.06 | 2.62 | 2.41 | 2.26 | 2.10 | 2.34 | 2.37 | 2.27 | 2.50 | 3.07 | 3.79 | 3.82 | 3.85 | 3.74 | 4.28 | 4.35 | 4.60 | — | — | — | — | |||||||
| Cisco Systems Inc. | 0.87 | 0.84 | 0.81 | 0.81 | 0.79 | 0.75 | 0.83 | 0.81 | 1.00 | 0.93 | 0.97 | 1.12 | 1.11 | 1.16 | 1.10 | 1.23 | 1.14 | 1.05 | 1.24 | 1.37 | 1.61 | |||||||
| Dell Technologies Inc. | 0.16 | 0.17 | 0.09 | 0.10 | 0.13 | 0.17 | 0.32 | 0.21 | 0.26 | 0.26 | 0.22 | 0.21 | 0.24 | 0.18 | 0.17 | 0.20 | 0.21 | — | — | — | — | |||||||
| Super Micro Computer Inc. | 0.34 | 0.32 | 0.33 | 0.33 | 0.18 | 0.18 | 0.17 | 0.21 | 0.25 | 0.24 | 0.23 | 0.47 | 0.51 | 0.30 | 0.38 | 0.46 | 0.41 | 0.41 | 0.30 | 0.16 | 0.14 | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,365 ÷ 4,175 = 0.33
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets display a fluctuating trend over the analyzed periods. Starting at 1,456 million USD in March 2019, the value declines to a low of 971 million USD by September 2019 before sharply increasing to a peak of 2,672 million USD at the end of 2020. Subsequently, a general decline is observed with intermittent slight recoveries, reaching 1,365 million USD by March 2024. Notably, the cash reserves experienced substantial volatility with notable highs in late 2019 and late 2020, followed by a gradual downward trend in the last few quarters.
- Current Liabilities
- Current liabilities present a generally increasing trajectory from March 2019 through March 2024. Beginning at 3,059 million USD, liabilities rise with some fluctuations, peaking at 5,530 million USD in June 2022. Thereafter, slight decreases and stabilization occur, with values hovering around 4,100 to 4,800 million USD in the most recent quarters. This upward movement in current liabilities indicates growing short-term financial obligations over the time series.
- Cash Ratio
- The cash ratio indicates the company's short-term liquidity by comparing cash assets to current liabilities. The ratio fluctuates considerably across the periods, beginning at 0.48 in March 2019 and dropping to a low of 0.27 by September 2019. It then improves substantially to around 0.71–0.82 during 2019 and early 2021, showing stronger liquidity positions. However, after early 2021, the cash ratio declines steadily, reaching lows of 0.24 in March 2023 before modestly recovering to 0.33 by March 2024. Overall, this suggests that the company's immediate ability to cover current liabilities with cash weakened over time, especially after mid-2021.
- Summary of Trends and Insights
- The data reveals a pattern of fluctuating cash reserves juxtaposed with progressively increasing current liabilities. The volatility in cash assets combined with steadily rising liabilities contributes to a declining cash ratio, reflecting reduced short-term liquidity resilience. Although there are intermittent improvements in the cash ratio, including peaks in late 2019 and early 2021, the general trend post-2021 points toward tightening cash coverage of liabilities. This dynamic may warrant attention from a financial management perspective, emphasizing the importance of monitoring liquidity and potentially reinforcing cash positions relative to obligations.