Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Newmont Corp., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
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 exhibits a fluctuating trend over the analyzed period. Starting at 2.63 in 2019, it slightly decreased to 2.52 in 2020, followed by an increase to 2.9 in 2021. Subsequently, it declined to 2.23 in 2022 and experienced a significant drop to 1.25 by the end of 2023. This pattern suggests declining short-term liquidity, with a particularly notable decrease in the most recent year.
- Quick Ratio
- The quick ratio shows an initial improvement, rising from 1.2 in 2019 to 1.86 in 2020 and further to 2.04 in 2021. Afterwards, it decreased to 1.52 in 2022 and more sharply to 0.71 in 2023. This indicates a weakening ability to cover short-term liabilities with more liquid assets starting from 2022, culminating in a weak liquidity position in 2023.
- Cash Ratio
- The cash ratio follows a similar pattern to the quick ratio. It increased from 1.04 in 2019 to 1.73 in 2020 and 1.91 in 2021, suggesting improved cash coverage of current liabilities during this period. However, this ratio fell to 1.28 in 2022 and further halved to 0.5 in 2023, highlighting a substantial reduction in available cash relative to current liabilities by the end of 2023.
- Overall Liquidity Trend
- Across all three liquidity measures, the trend indicates strengthening liquidity from 2019 through 2021, followed by a marked decline in 2022 and a steeper deterioration in 2023. The rapid drops in 2023, particularly the current and quick ratios falling below 1.5 and 1 respectively, signal increased liquidity risk and potential challenges in meeting short-term obligations without asset sales or external financing.
Current Ratio
Newmont Corp., 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 | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Freeport-McMoRan Inc. | ||||||
| Current Ratio, Industry | ||||||
| Materials | ||||||
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
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets experienced an overall upward trend from 2019 to 2023, starting at 6,272 million USD in 2019 and peaking at 8,505 million USD in 2020. Following this peak, there was a decline in 2021 and 2022, with values dropping to 7,696 million USD and 6,515 million USD respectively. In 2023, current assets recovered somewhat, increasing to 7,512 million USD.
- Current Liabilities
- Current liabilities showed a consistent increase over the five-year period. Beginning at 2,385 million USD in 2019, they rose to 3,369 million USD in 2020, then slightly decreased in 2021 to 2,654 million USD. However, from 2021 onwards, current liabilities increased noticeably to 2,926 million USD in 2022 and sharply to 5,998 million USD by the end of 2023.
- Current Ratio
- The current ratio started at a healthy level of 2.63 in 2019 and remained relatively stable in 2020 at 2.52. It improved to 2.9 in 2021, indicating stronger short-term liquidity. However, the ratio declined in subsequent years, dropping to 2.23 in 2022 and then undergoing a significant decline to 1.25 by the end of 2023. This suggests a reduction in the company’s ability to cover short-term liabilities with current assets as of the latest period.
Quick Ratio
Newmont Corp., 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 | ||||||
| Time deposits and other investments | ||||||
| Trade receivables | ||||||
| Other receivables | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Freeport-McMoRan Inc. | ||||||
| Quick Ratio, Industry | ||||||
| Materials | ||||||
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
= ÷ =
2 Click competitor name to see calculations.
- Analysis of Total Quick Assets
- The total quick assets experienced a significant increase from 2019 to 2020, rising from 2,853 million US dollars to 6,279 million US dollars. However, from 2020 onwards, a downward trend is observable, with total quick assets decreasing to 5,411 million in 2021, then further declining to 4,447 million in 2022, and reaching 4,252 million by the end of 2023.
- Analysis of Current Liabilities
- Current liabilities showed an upward trajectory over the period. They increased from 2,385 million US dollars in 2019 to 3,369 million in 2020. Following this, a decrease to 2,654 million occurred in 2021; however, liabilities rose again to 2,926 million in 2022 and sharply increased to 5,998 million by the end of 2023.
- Analysis of Quick Ratio
- The quick ratio, an indicator of short-term liquidity, improved initially from 1.2 in 2019 to 1.86 in 2020 and further to 2.04 in 2021, indicating strengthening liquidity during this period. From 2021 onwards, the quick ratio declined to 1.52 in 2022 and then fell substantially to 0.71 in 2023, suggesting a deterioration in the company's ability to cover current liabilities with its most liquid assets.
- Summary of Trends and Insights
- Overall, the data reflect a period of increased liquidity from 2019 to 2021 characterized by rising quick assets and improving quick ratio. However, from 2021 onwards, liquidity weakened as quick assets steadily declined while current liabilities rose sharply, especially in 2023. The sharp drop in the quick ratio in 2023 to below 1 signals a potential liquidity risk, indicating that the company's quick assets are no longer sufficient to cover its short-term obligations effectively.
Cash Ratio
Newmont Corp., 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 | ||||||
| Time deposits and other investments | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Freeport-McMoRan Inc. | ||||||
| Cash Ratio, Industry | ||||||
| Materials | ||||||
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
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets experienced a marked increase from 2480 million US dollars at the end of 2019 to a peak of 5830 million US dollars by the end of 2020. Subsequently, there was a gradual decline in cash assets, dropping to 5074 million in 2021, then further down to 3757 million in 2022, and reaching 3025 million by the end of 2023. This pattern indicates a significant accumulation of cash in 2020 followed by a steady reduction over the following three years.
- Current Liabilities
- Current liabilities showed a consistent upward trend over the five-year period. Starting at 2385 million US dollars at the end of 2019, liabilities rose to 3369 million by the end of 2020. There was a slight decrease to 2654 million in 2021 before resuming an upward trajectory to 2926 million in 2022 and sharply increasing to 5998 million by the end of 2023. This increase in liabilities, particularly the sharp rise in 2023, could reflect changes in short-term obligations or financial strategy.
- Cash Ratio
- The cash ratio, representing liquidity, increased significantly from 1.04 at the end of 2019 to 1.73 in 2020 and further to 1.91 in 2021, indicating improving short-term liquidity and a stronger ability to cover current liabilities with cash. However, the ratio declined to 1.28 in 2022, followed by a substantial decrease to 0.5 in 2023. The sharp decline in 2023 suggests a potential liquidity pressure, as cash assets became insufficient to cover half of the current liabilities, highlighting a possible risk in short-term financial stability.