Liquidity ratios measure the company ability to meet its short-term obligations.
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- Statement of Comprehensive Income
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- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Liquidity Ratios (Summary)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Current ratio | ||||||
Quick ratio | ||||||
Cash ratio |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Current Ratio
- The current ratio demonstrates a steady increase over the five-year period, beginning at 1.23 in 2020 and rising to 1.45 by 2024. This trend indicates a gradual improvement in the company's short-term liquidity position, suggesting enhancing ability to cover current liabilities with current assets.
- Quick Ratio
- The quick ratio also shows a positive upward trend from 0.79 in 2020 to 0.99 in 2024. This increase reflects a consistent strengthening in the company's immediate liquidity, excluding inventory, and points to a better capacity to meet short-term obligations with more liquid assets.
- Cash Ratio
- The cash ratio fluctuates mildly but ultimately increases from 0.29 in 2020 to 0.36 in 2024. Despite a slight dip in 2022 to 0.24, the overall movement suggests an improved level of cash and cash equivalents relative to current liabilities, enhancing the company's ability to address short-term debts through the most liquid resource.
- Overall Analysis
- All liquidity ratios reveal a consistent trend of improvement over the analyzed period. The gradual increases in current, quick, and cash ratios indicate a strengthening liquidity profile, reflecting a more robust capacity to cover short-term liabilities. The fluctuations observed are minor and do not disrupt the overall positive trend, highlighting an effective management of current assets and liabilities.
Current Ratio
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
- Current Assets
- Current assets demonstrated a consistent upward trend over the five-year period, increasing from US$12,919 million at the end of 2020 to US$18,570 million by the end of 2024. Notably, the most significant increment occurred between 2021 and 2022, where current assets rose by approximately 18.5%, indicating an improvement in asset liquidity and possibly an enhanced ability to cover short-term obligations.
- Current Liabilities
- Current liabilities also increased over the period but at a generally slower pace compared to current assets. Starting at US$10,491 million in 2020, liabilities rose to US$12,811 million in 2024. However, a deviation was observed in 2024 when current liabilities decreased slightly from US$13,395 million in 2023. This reduction may imply efforts to manage or reduce short-term debt or obligations.
- Current Ratio
- The current ratio reflected an improving liquidity position over the observed years. Beginning at 1.23 in 2020, the ratio showed incremental growth each year, culminating at 1.45 in 2024. This indicates a strengthening capacity to cover current liabilities with current assets, suggesting enhanced short-term financial stability and potentially greater operational flexibility.
Quick Ratio
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
- Total Quick Assets
- The total quick assets demonstrate a steady upward trend from 2020 to 2024. Beginning at 8,253 million US dollars in 2020, the amount increased slightly to 8,454 million in 2021, followed by a more pronounced rise to 9,926 million in 2022. The upward trajectory continued in subsequent years, reaching 11,801 million in 2023 and 12,680 million in 2024. This consistent growth reflects an improvement in the company's liquid asset base over the five-year period.
- Current Liabilities
- Current liabilities exhibit a fluctuating but generally increasing pattern over the analyzed period. The liabilities started at 10,491 million US dollars in 2020 and experienced a minor decline to 10,359 million in 2021. However, in 2022, current liabilities rose significantly to 12,018 million, followed by a further increase to 13,395 million in 2023. There was a slight reduction in 2024, with current liabilities recorded at 12,811 million. Overall, current liabilities increased over the five-year span despite some volatility.
- Quick Ratio
- The quick ratio, a measure of short-term liquidity, showed a consistent improvement throughout the period. The ratio started below 1 at 0.79 in 2020, moving upward to 0.82 in 2021 and 0.83 in 2022. More notably, the ratio advanced to 0.88 in 2023 and approached parity at 0.99 in 2024. This positive trend indicates enhanced ability to cover immediate liabilities with quick assets, reflecting strengthening liquidity position over time.
- Overall Analysis
- The data indicates that quick assets increased steadily, outpacing the growth in current liabilities in the latter years, which contributed to the improving quick ratio. Despite fluctuations in current liabilities, the company appears to have strengthened its short-term financial health. By 2024, nearing a quick ratio of 1 suggests an improved capacity to meet current obligations without relying on inventory or other less liquid assets.
Cash Ratio
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
- Total cash assets
- The total cash assets exhibit an overall upward trend across the years observed. Starting at 3006 million US dollars in 2020, there is a slight increase in 2021 to 3139 million US dollars. However, a decline occurs in 2022, where cash assets decrease to 2894 million US dollars. Following this, a notable recovery is seen, with cash assets rising to 3989 million US dollars in 2023 and further increasing to 4669 million US dollars in 2024.
- Current liabilities
- Current liabilities demonstrate a generally increasing pattern over the period. Beginning at 10491 million US dollars in 2020, liabilities slightly decrease to 10359 million US dollars in 2021 but then rise steadily in the following years, reaching 12018 million US dollars in 2022, growing further to 13395 million US dollars in 2023. There is a minor reduction in 2024 to 12811 million US dollars, yet the level remains significantly above the initial value.
- Cash ratio
- The cash ratio fluctuates throughout the period, reflecting changes in liquidity. It starts at 0.29 in 2020, marginally increases to 0.3 in 2021, then declines to 0.24 in 2022, indicating a lower ability to cover current liabilities with cash. In 2023, the ratio improves again to 0.3 and further increases to 0.36 in 2024, suggesting enhanced liquidity and a stronger position to meet short-term obligations with available cash.