Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
DuPont de Nemours Inc., liquidity ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
- Current Ratio
- The current ratio exhibits a generally declining trend over the observed periods from March 31, 2016, to December 31, 2019. Beginning at 2.00, the ratio experiences minor fluctuations but ultimately decreases to 1.20 by the end of 2019. Notable decreases occur particularly during 2018 and 2019, where the ratio falls below the 1.7 threshold observed in earlier years, suggesting a reduction in the company's short-term liquidity.
- Quick Ratio
- The quick ratio similarly shows a downward trajectory across the time frame. Starting at 1.32 in March 2016, it declines with variable fluctuations, reaching 0.64 by the end of 2019. The ratio experiences sharper drops in 2018 and maintains relatively lower values compared to prior years, indicating a diminishing capacity to meet immediate liabilities without relying on inventory sales.
- Cash Ratio
- The cash ratio declines steadily from 0.57 in March 2016 to 0.18 in December 2019. This reduction is consistent and pronounced, with the lowest point recorded in the latest period. The falling cash ratio suggests a weakening in the company's most liquid asset position to cover current obligations, potentially signaling increased reliance on less liquid current assets or a tightened cash management approach.
Current Ratio
DuPont de Nemours Inc., current ratio calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | |||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Linde plc | |||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets exhibited an overall upward trend from March 2016 through December 2017, increasing from approximately $23.3 billion to nearly $54.8 billion. This peak in September 2017 was followed by a decline through the end of 2019, reaching levels just below $10 billion by December 2019. The data indicates a significant increase in current assets during 2017, after which there was a substantial reduction over the following two years.
- Current Liabilities
- Current liabilities mirrored the movement of current assets to some extent, increasing steadily from $11.7 billion in March 2016 to a peak of about $27.3 billion in September 2017. After this peak, a downward trend is noticeable into the first half of 2019, with values declining to roughly $6.5 billion by June 2019, but then a rise occurs by the end of 2019 to approximately $8.3 billion. Overall, liabilities showed a sharp increase during 2017 and volatility thereafter.
- Current Ratio
- The current ratio displayed moderate fluctuations over the analyzed period. It started near 2.0 in early 2016, slightly declined during 2016 and the first half of 2017, then increased to above 2.0 by the end of 2017. In 2018, the ratio decreased again, touching lows around 1.64 before rising back to 2.01 at year-end 2018. Through 2019, the ratio steadily declined, ending at 1.2 in December. This suggests varying liquidity levels, with periods of stronger short-term financial stability alternating with times where liquidity was comparatively weaker, especially in the latter part of the period.
- Overall Analysis
- The data reveals significant growth in both current assets and current liabilities during 2017, peaking in the third quarter of that year, which could indicate strategic shifts such as acquisitions or changes in working capital management. Following this, both assets and liabilities declined markedly through 2018 and 2019, which may reflect divestitures, asset sales, or operational adjustments. The current ratio trends imply that the company maintained a generally comfortable liquidity position through most of the period, though the decreasing ratio in 2019 points to a potential weakening in short-term financial stability toward the end of the timeframe.
Quick Ratio
DuPont de Nemours Inc., quick ratio calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||
| Marketable securities | |||||||||||||||||||||
| Accounts and notes receivable, net | |||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Linde plc | |||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrated a generally fluctuating pattern over the observed quarters. Initially, there was an increase from approximately 15,371 million in the first quarter of 2016 to a notable peak of around 33,230 million in the third quarter of 2017. After this peak, the quick assets showed a decline followed by moderate variations, ending at 5,342 million by the last quarter of 2019. This sharp decrease towards the end of the period suggests a reduction in highly liquid assets.
- Current Liabilities
- Current liabilities rose from 11,682 million in the first quarter of 2016 to around 27,278 million by the third quarter of 2017, coinciding with the peak in quick assets. Subsequently, liabilities remained elevated but started to decrease gradually, reaching 6,616 million mid-2019, before rising again to 8,346 million in the last quarter of 2019. This trend indicates fluctuations in obligations due within a year, with the highest levels observed during late 2017 and a notable reduction in 2019 before a slight increase.
- Quick Ratio
- The quick ratio exhibited a declining trend from 1.32 at the beginning of 2016 to 0.64 by the end of 2019. Initially above 1.0, indicating sufficient liquid assets to cover current liabilities, the ratio fell below 1.0 several times after mid-2018, signaling a deterioration in short-term liquidity. The lowest quick ratio of 0.64 in the final quarter suggests a potentially weaker liquidity position, implying the company had less quick assets relative to current liabilities at that time.
- Summary Insights
- The data reveals an overall reduction in liquidity over the examined period, as indicated by the downward trend in the quick ratio combined with the sharp decline in total quick assets toward the end of 2019. The simultaneous fluctuations in current liabilities suggest varying pressures on short-term obligations. The peak in both quick assets and liabilities around late 2017 could reflect a period of significant financial activity or restructuring. The decline in liquidity ratios below 1.0 in recent quarters highlights a need for closer monitoring of the company’s ability to meet short-term obligations.
Cash Ratio
DuPont de Nemours Inc., cash ratio calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||
| Marketable securities | |||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Linde plc | |||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data presented reveals several key trends in the company's liquidity and short-term financial position over the examined quarters.
- Total Cash Assets
- The total cash assets exhibited fluctuations across the periods. Starting at $6,610 million in the first quarter of 2016, cash holdings generally increased with notable peaks in the third quarter of 2017 at $14,974 million and in the last quarter of 2018 at $13,616 million. However, there are also significant declines, especially towards the end of the period under review, with cash assets dropping sharply to $1,669 million in the second quarter of 2019 and remaining low thereafter. This pattern indicates periods of substantial liquidity buildup followed by marked reductions, which may reflect strategic cash management decisions, such as capital expenditures or debt repayments.
- Current Liabilities
- Current liabilities started at $11,682 million in March 2016 and showed an overall increasing trend, especially pronounced in the latter half of 2017 where liabilities almost doubled compared to the first half of 2016, peaking at $27,278 million in September 2017. After stabilizing through 2018 with values near $25-$28 billion, there was an abrupt drop in current liabilities in 2019, falling to values ranging between approximately $6,457 million and $8,346 million in the subsequent quarters. Such volatility suggests significant reclassification, settlement of short-term obligations, or changes in operational or financing activities impacting short-term debt levels.
- Cash Ratio
- The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, generally exhibited a declining trend from an initial 0.57 in early 2016 to lower values around 0.26 by the end of 2018. Notably, the ratio improved temporarily to 0.55 in the last quarter of 2018, coinciding with a peak in cash assets, before declining again in 2019 to a low of 0.18 by the last quarter. This indicates that despite occasional improvements, the company’s immediate liquidity relative to its short-term obligations weakened over time, potentially reflecting increased reliance on other forms of current assets or external financing to meet obligations.
Overall, the data indicates periods of significant liquidity accumulation followed by substantial reductions, paired with large fluctuations in current liabilities. These dynamics have led to a cash ratio that declined over the observed period, suggesting a more constrained immediate liquidity position in recent quarters relative to earlier quarters. This could signal changes in the company’s working capital management or broader financial strategy impacting short-term solvency metrics.