Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
McDonald’s Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 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).
The financial liquidity ratios presented demonstrate variability in the company's short-term financial health across multiple quarters from March 2020 to June 2025. Three key ratios—current ratio, quick ratio, and cash ratio—are examined to assess the trends in liquidity and immediate solvency.
- Current Ratio
- The current ratio exhibits notable fluctuations over the period. Initially, it starts at a high of 1.9 in March 2020, then declines sharply to below 1 (0.91) in June 2020, indicating a potential liquidity tightening during that quarter. Subsequent quarters show recovery and moderate volatility, with peaks near 1.78 to 1.71 in late 2021 and 2023, indicating relatively strong short-term liquidity. However, several quarters, particularly from early 2024, show dips below 1 (ranging approximately from 0.78 to 1.19), suggesting intermittent stress on short-term asset coverage of liabilities. Towards the last recorded quarters, the current ratio improves slightly to around 1.18-1.3, hinting at modest stabilization.
- Quick Ratio
- The quick ratio trend closely mirrors that of the current ratio but stays consistently slightly lower, as expected due to the exclusion of inventory. It begins at 1.77 in March 2020, dips below 1 in mid-2020, and sees recovery phases up to around 1.64 in late 2021. Subsequent quarters reflect moderate volatility, with periods again falling below 1 especially in early 2024 (down to approximately 0.58). The ratio rises somewhat toward mid-2025, reaching around 1.03, signaling a cautious improvement in liquidity excluding inventory assets.
- Cash Ratio
- The cash ratio shows more pronounced volatility and generally lower values compared to the current and quick ratios, reflecting a more stringent measure of immediate liquidity. It starts relatively high at 1.35 in March 2020 but drops steeply to nearly 0.45 by June 2020, signifying a sharp reduction in cash and cash equivalents relative to current liabilities. Temporary recoveries are evident, peaking near 1.17 in late 2021 and 0.87 in late 2023. However, a downward trend emerges from 2024 onward, with significant lows near 0.17 to 0.31, suggesting limited available cash buffers during that timeframe. There is a slight improvement by mid-2025 to 0.44, but overall levels remain subdued compared to earlier years.
In summary, the liquidity ratios indicate the company has experienced fluctuations in short-term financial flexibility. Initial periods show robust liquidity metrics, which weakened considerably during mid-2020, possibly reflecting external pressures or operational challenges. Recovery phases occur intermittently through 2021 and 2023, but the later periods, particularly beginning in 2024, present weaker liquidity positions with decreases in all three ratios. The cash ratio’s markedly lower values imply increasingly constrained immediate cash availability relative to obligations. The moderate improvements towards mid-2025 suggest some stabilization but continued focus on liquidity management may be warranted.
Current Ratio
McDonald’s Corp., current ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 5,601) | 4,735) | 4,599) | 4,912) | 4,205) | 4,057) | 7,986) | 6,850) | 4,945) | 6,799) | 5,424) | 5,741) | 4,919) | 4,656) | 7,149) | 6,796) | 5,701) | 5,468) | 6,243) | 6,736) | 6,609) | 7,557) | |||||||
| Current liabilities | 4,298) | 4,008) | 3,861) | 6,308) | 3,910) | 4,886) | 6,859) | 4,003) | 3,674) | 4,625) | 3,802) | 3,486) | 3,480) | 4,235) | 4,020) | 5,096) | 3,935) | 4,580) | 6,181) | 6,280) | 7,246) | 3,988) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 1.30 | 1.18 | 1.19 | 0.78 | 1.08 | 0.83 | 1.16 | 1.71 | 1.35 | 1.47 | 1.43 | 1.65 | 1.41 | 1.10 | 1.78 | 1.33 | 1.45 | 1.19 | 1.01 | 1.07 | 0.91 | 1.90 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Airbnb Inc. | 1.23 | 1.27 | 1.69 | 1.62 | 1.41 | 1.44 | 1.66 | 1.78 | 1.47 | 1.55 | 1.86 | 1.85 | 1.58 | 1.61 | 1.95 | 1.86 | 1.48 | 1.66 | — | — | — | — | |||||||
| Booking Holdings Inc. | 1.25 | 1.22 | 1.31 | 1.23 | 1.17 | 1.22 | 1.28 | 1.44 | 1.55 | 1.59 | 1.86 | 1.45 | 1.45 | 1.72 | 2.10 | 2.48 | 2.05 | 2.18 | 3.56 | 3.17 | 2.93 | 2.24 | |||||||
| Chipotle Mexican Grill Inc. | 1.65 | 1.52 | 1.52 | 1.62 | 1.71 | 1.65 | 1.57 | 1.53 | 1.58 | 1.41 | 1.28 | 1.32 | 1.26 | 1.32 | 1.58 | 1.78 | 1.73 | 1.75 | 1.73 | 1.51 | 1.59 | 1.62 | |||||||
| DoorDash, Inc. | 2.07 | 1.72 | 1.66 | 1.65 | 1.64 | 1.64 | 1.64 | 1.72 | 1.69 | 1.73 | 1.86 | 2.12 | 2.39 | 2.51 | 2.59 | 3.52 | 4.14 | 4.59 | — | — | — | — | |||||||
| Starbucks Corp. | 0.64 | 0.75 | 0.75 | 0.89 | 0.86 | 0.70 | 0.78 | 0.78 | 0.77 | 0.75 | 0.77 | 0.84 | 0.83 | 0.81 | 1.20 | 1.02 | 1.07 | 1.06 | 1.06 | 0.95 | 0.70 | 0.68 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 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).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,601 ÷ 4,298 = 1.30
2 Click competitor name to see calculations.
- Current Assets
- The current assets show a fluctuating pattern over the reported periods, with values ranging from a high of 7,986 million USD at the end of December 2023 to a low of 4,057 million USD at the end of March 2024. Initially, the values decline from 7,557 million USD in March 2020 to 5,468 million USD by March 2021. A rebound is observed until the end of December 2021, reaching 7,149 million USD, followed by another decrease throughout 2022, reaching 5,424 million USD in December 2022. A rise occurs again in early 2023, peaking in December 2023, before a pronounced decline in the first quarter of 2024. Subsequently, the values show a moderate upward trend toward mid-2025.
- Current Liabilities
- Current liabilities exhibit notable volatility during the examined quarters. A sharp increase is seen from 3,988 million USD in March 2020 to 7,246 million USD in June 2020, followed by a decline and some fluctuations around the 4,000 to 5,000 million USD range for most of the period until the end of 2022. The liabilities decrease to a low of 3,480 million USD in June 2022, then fluctuate with less pronounced variability through 2023. Toward the end of 2023 and beginning of 2024, the liabilities rise sharply again, reaching a peak of 6,859 million USD in December 2023, before declining and stabilizing at lower levels near 4,000 million USD into mid-2025.
- Current Ratio
- The current ratio, which represents the liquidity position by comparing current assets to current liabilities, shows considerable instability throughout the periods. It begins at a strong 1.9 in March 2020, then sharply drops below 1.0 during the second quarter of 2020, indicating a relative liquidity concern at that time. A recovery trend is seen in the subsequent quarters, including a peak of 1.78 in December 2021. Following this, the ratio generally remains above 1.0 with fluctuations, but notable dips below 1.0 occur again in March and September 2024, reflecting temporary liquidity pressures. By mid-2025, the ratio modestly improves and stabilizes around 1.18 to 1.3, implying a restoration of more balanced short-term financial health.
Quick Ratio
McDonald’s Corp., quick ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and equivalents | 1,876) | 1,238) | 1,085) | 1,221) | 792) | 838) | 4,579) | 3,496) | 1,626) | 3,708) | 2,584) | 2,828) | 1,873) | 2,336) | 4,709) | 4,306) | 3,049) | 3,020) | 3,449) | 3,684) | 3,256) | 5,380) | |||||||
| Accounts and notes receivable | 2,550) | 2,387) | 2,383) | 2,460) | 2,404) | 2,238) | 2,488) | 2,247) | 2,194) | 2,076) | 2,115) | 1,890) | 1,837) | 1,674) | 1,872) | 1,829) | 1,808) | 1,734) | 2,110) | 2,392) | 2,853) | 1,695) | |||||||
| Total quick assets | 4,426) | 3,625) | 3,468) | 3,681) | 3,196) | 3,076) | 7,067) | 5,743) | 3,819) | 5,784) | 4,699) | 4,718) | 3,709) | 4,010) | 6,582) | 6,134) | 4,858) | 4,753) | 5,559) | 6,076) | 6,108) | 7,075) | |||||||
| Current liabilities | 4,298) | 4,008) | 3,861) | 6,308) | 3,910) | 4,886) | 6,859) | 4,003) | 3,674) | 4,625) | 3,802) | 3,486) | 3,480) | 4,235) | 4,020) | 5,096) | 3,935) | 4,580) | 6,181) | 6,280) | 7,246) | 3,988) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 1.03 | 0.90 | 0.90 | 0.58 | 0.82 | 0.63 | 1.03 | 1.43 | 1.04 | 1.25 | 1.24 | 1.35 | 1.07 | 0.95 | 1.64 | 1.20 | 1.23 | 1.04 | 0.90 | 0.97 | 0.84 | 1.77 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Airbnb Inc. | 1.20 | 1.25 | 1.64 | 1.59 | 1.38 | 1.41 | 1.62 | 1.75 | 1.45 | 1.52 | 1.83 | 1.82 | 1.55 | 1.59 | 1.91 | 1.83 | 1.46 | 1.62 | — | — | — | — | |||||||
| Booking Holdings Inc. | 1.18 | 1.15 | 1.24 | 1.16 | 1.11 | 1.15 | 1.20 | 1.35 | 1.45 | 1.49 | 1.73 | 1.34 | 1.37 | 1.63 | 2.00 | 2.28 | 1.86 | 1.97 | 3.24 | 3.04 | 2.81 | 1.70 | |||||||
| Chipotle Mexican Grill Inc. | 1.46 | 1.39 | 1.34 | 1.41 | 1.52 | 1.51 | 1.37 | 1.40 | 1.44 | 1.26 | 1.09 | 1.05 | 1.02 | 1.13 | 1.35 | 1.29 | 1.28 | 1.35 | 1.28 | 1.34 | 1.35 | 1.42 | |||||||
| DoorDash, Inc. | 1.83 | 1.49 | 1.41 | 1.36 | 1.35 | 1.35 | 1.35 | 1.42 | 1.41 | 1.43 | 1.54 | 1.87 | 2.14 | 2.23 | 2.33 | 3.32 | 3.93 | 4.35 | — | — | — | — | |||||||
| Starbucks Corp. | 0.40 | 0.53 | 0.52 | 0.59 | 0.56 | 0.48 | 0.55 | 0.52 | 0.51 | 0.48 | 0.48 | 0.52 | 0.55 | 0.57 | 0.93 | 0.75 | 0.75 | 0.78 | 0.75 | 0.63 | 0.43 | 0.46 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 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).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,426 ÷ 4,298 = 1.03
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrated significant fluctuations over the observed periods. Starting at 7,075 million USD in the first quarter of 2020, the value declined sharply to 4,753 million USD by the first quarter of 2021. This was followed by a recovery phase through the remainder of 2021, reaching 6,582 million USD at year-end. A notable decline occurred again throughout 2022, reaching a low of 3,709 million USD by mid-year, before a rebound in late 2022 and early 2023. The asset value peaked again at 7,067 million USD in late 2023, thereafter declining into 2024 with values fluctuating between approximately 3,000 to 4,400 million USD. Overall, the trend suggests a cyclical pattern with considerable volatility and apparent periods of asset build-up followed by reductions.
- Current Liabilities
- Current liabilities exhibited considerable variability throughout the time frame. The level rose notably from 3,988 million USD in the first quarter of 2020 to a peak of 7,246 million USD in the second quarter of 2020, followed by a gradual decrease to around 3,935 million USD mid-2021. The period from the end of 2021 through 2023 showed an alternating pattern of rises and falls, with notable increases during some year-end quarters. Another peak occurred in late 2023 at 6,859 million USD, preceding declining values in 2024. The data indicate fluctuating short-term obligations, possibly reflecting changes in operational or financing activities, with some quarters experiencing significant spikes.
- Quick Ratio
- The quick ratio, representing the relationship between liquid assets and current liabilities, displayed substantial oscillations in the reviewed periods. Initially, the ratio started robustly at 1.77 in early 2020 but decreased sharply in the subsequent quarters to lows below 1.00 during much of 2020. A recovery was evident by late 2021 when the ratio exceeded 1.5, suggesting improved short-term liquidity. However, 2022 and 2023 saw the ratio fluctuate mostly between 1.0 and 1.4, with occasional dips near or below 1.0. A declining trend emerged in 2024, with the ratio falling steadily below 1.0 before a modest rebound to 1.03 at the last quarter observed. These variations indicate periods with potentially constrained liquidity interspersed with times of stronger short-term financial position.
Cash Ratio
McDonald’s Corp., cash ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and equivalents | 1,876) | 1,238) | 1,085) | 1,221) | 792) | 838) | 4,579) | 3,496) | 1,626) | 3,708) | 2,584) | 2,828) | 1,873) | 2,336) | 4,709) | 4,306) | 3,049) | 3,020) | 3,449) | 3,684) | 3,256) | 5,380) | |||||||
| Total cash assets | 1,876) | 1,238) | 1,085) | 1,221) | 792) | 838) | 4,579) | 3,496) | 1,626) | 3,708) | 2,584) | 2,828) | 1,873) | 2,336) | 4,709) | 4,306) | 3,049) | 3,020) | 3,449) | 3,684) | 3,256) | 5,380) | |||||||
| Current liabilities | 4,298) | 4,008) | 3,861) | 6,308) | 3,910) | 4,886) | 6,859) | 4,003) | 3,674) | 4,625) | 3,802) | 3,486) | 3,480) | 4,235) | 4,020) | 5,096) | 3,935) | 4,580) | 6,181) | 6,280) | 7,246) | 3,988) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 0.44 | 0.31 | 0.28 | 0.19 | 0.20 | 0.17 | 0.67 | 0.87 | 0.44 | 0.80 | 0.68 | 0.81 | 0.54 | 0.55 | 1.17 | 0.85 | 0.77 | 0.66 | 0.56 | 0.59 | 0.45 | 1.35 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Airbnb Inc. | 0.60 | 0.69 | 1.04 | 0.99 | 0.71 | 0.78 | 1.01 | 1.12 | 0.76 | 0.87 | 1.21 | 1.20 | 0.88 | 0.95 | 1.31 | 1.21 | 0.78 | 1.00 | — | — | — | — | |||||||
| Booking Holdings Inc. | 0.94 | 0.95 | 1.03 | 0.95 | 0.90 | 0.95 | 0.95 | 1.08 | 1.22 | 1.31 | 1.46 | 1.07 | 1.15 | 1.41 | 1.78 | 2.01 | 1.67 | 1.88 | 3.08 | 2.82 | 2.66 | 1.54 | |||||||
| Chipotle Mexican Grill Inc. | 1.37 | 1.30 | 1.22 | 1.32 | 1.43 | 1.42 | 1.26 | 1.34 | 1.38 | 1.19 | 0.98 | 0.96 | 0.92 | 1.03 | 1.23 | 1.20 | 1.19 | 1.27 | 1.16 | 1.25 | 1.25 | 1.32 | |||||||
| DoorDash, Inc. | 1.65 | 1.32 | 1.25 | 1.21 | 1.21 | 1.20 | 1.20 | 1.28 | 1.27 | 1.28 | 1.38 | 1.72 | 1.97 | 2.04 | 2.13 | 3.11 | 3.73 | 4.09 | — | — | — | — | |||||||
| Starbucks Corp. | 0.29 | 0.41 | 0.39 | 0.44 | 0.42 | 0.36 | 0.42 | 0.39 | 0.38 | 0.36 | 0.35 | 0.39 | 0.44 | 0.45 | 0.81 | 0.63 | 0.62 | 0.67 | 0.63 | 0.52 | 0.32 | 0.36 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 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).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,876 ÷ 4,298 = 0.44
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets demonstrate notable volatility over the periods analyzed. Initially, cash assets declined from $5,380 million in March 2020 to a low of $3,020 million in March 2021, followed by a recovery peaking at $4,709 million in December 2021. Subsequently, cash levels decreased sharply in 2022, reaching a trough of $1,626 million in June 2023. However, by the end of 2023, cash assets rebounded to $4,579 million. From early 2024 onwards, cash levels again fell significantly, hitting a minimum of $792 million in June 2024 before slightly increasing to $1,876 million by June 2025. The cash trends suggest fluctuating liquidity possibly linked to operational cycles or strategic cash management decisions.
- Current liabilities
- Current liabilities show irregular fluctuations with periods of both increase and decrease. Initially, liabilities surged from $3,988 million in March 2020 to a peak of $7,246 million in June 2020, followed by a general downward trend until March 2021 at $4,580 million. Another increase occurred later in 2021, with current liabilities reaching $6,859 million in December 2023, followed by a decline to approximately $3,861 to $4,298 million through mid-2025. The overall pattern suggests varying short-term obligations, potentially reflecting changing working capital needs or seasonal influences.
- Cash ratio
- The cash ratio, representing the proportion of cash assets to current liabilities, exhibits significant fluctuations consistent with the trends in cash assets and liabilities. The ratio started relatively strong at 1.35 in March 2020 but experienced a sharp decline to as low as 0.44 by June 2023, indicating decreased liquidity relative to short-term obligations. There were intermittent recoveries, such as a rise to 1.17 in December 2021 and 0.87 in September 2023, before the ratio declined again to a low 0.17 in March 2024. Towards mid-2025 it improved slightly to 0.44. Despite occasional improvements, the ratio frequently remained below 1.0, signaling that cash assets were generally insufficient to cover current liabilities without relying on other liquid assets or operating cash flows.
- Overall analysis
- The financial data reveals a pattern of fluctuating liquidity and current obligations over the course of almost five years. Periods of elevated current liabilities often coincided with decreased cash assets, leading to weakened cash ratios. This suggests reliance on other financial resources or credit to meet short-term liabilities at various points. The cash ratio volatility highlights challenges in maintaining consistent cash liquidity relative to immediate financial obligations. Monitoring these trends would be important for managing liquidity risk and ensuring operational stability.