Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Newmont Corp. (NYSE:NEM)

Analysis of Liquidity Ratios

Beginner level

Liquidity ratios measure the company’s ability to meet its short-term obligations.

Liquidity Ratios (Summary)

Newmont Corp., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current ratio 2.63 2.95 3.63 2.67 3.52
Quick ratio 1.20 2.07 2.47 1.68 2.16
Cash ratio 1.04 1.93 2.38 1.61 1.98

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Newmont Corp.’s current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Newmont Corp.’s quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Newmont Corp.’s cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Current Ratio

Newmont Corp., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current assets 6,272  5,277  5,066  4,677  4,983 
Current liabilities 2,385  1,787  1,395  1,750  1,416 
Liquidity Ratio
Current ratio1 2.63 2.95 3.63 2.67 3.52
Benchmarks
Current Ratio, Industry
Basic Materials 1.30 1.56 1.77 1.53 1.28

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,272 ÷ 2,385 = 2.63

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Newmont Corp.’s current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Quick Ratio

Newmont Corp., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,243  3,397  3,259  2,756  2,782 
Trade receivables 373  254  124  127  260 
Current investments 237  48  62  56  19 
Total quick assets 2,853  3,699  3,445  2,939  3,061 
 
Current liabilities 2,385  1,787  1,395  1,750  1,416 
Liquidity Ratio
Quick ratio1 1.20 2.07 2.47 1.68 2.16
Benchmarks
Quick Ratio, Industry
Basic Materials 0.85 0.95 1.27 1.02 0.76

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,853 ÷ 2,385 = 1.20

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Newmont Corp.’s quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Cash Ratio

Newmont Corp., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,243  3,397  3,259  2,756  2,782 
Current investments 237  48  62  56  19 
Total cash assets 2,480  3,445  3,321  2,812  2,801 
 
Current liabilities 2,385  1,787  1,395  1,750  1,416 
Liquidity Ratio
Cash ratio1 1.04 1.93 2.38 1.61 1.98
Benchmarks
Cash Ratio, Industry
Basic Materials 0.39 0.53 0.74 0.49 0.28

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,480 ÷ 2,385 = 1.04

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Newmont Corp.’s cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019.