Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Zoetis Inc., liquidity ratios (quarterly data)
Based on: 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).
- Current Ratio
- The current ratio exhibits notable fluctuations over the observed periods. It starts relatively high in early 2020, reaching a peak around mid to late 2021 with a maximum value of 4.54, indicating strong liquidity during that time. However, there is a marked decline beginning in early 2022, with the ratio falling below 2.5, suggesting tighter short-term liquidity. From early 2023 onward, the ratio recovers and stabilizes above 3.3, reflecting improved working capital management and a favorable liquidity position.
- Quick Ratio
- The quick ratio follows a similar pattern to the current ratio but at consistently lower values, given it excludes inventory. It peaks around the same period in late 2021 at just above 3.0, indicating enhanced ability to cover short-term liabilities with the most liquid assets at that time. There is a decline between early 2022 and early 2023, with values dropping to approximately 1.28 at their lowest, implying relatively less immediate liquidity. Recent quarters show a moderate recovery, fluctuating between 1.7 and 1.9, suggesting moderate improvement in liquidity without reliance on inventory.
- Cash Ratio
- The cash ratio is the most conservative liquidity measure and shows a more subdued trend overall. It reaches its highest levels in mid to late 2020 and late 2021, peaking at 2.23, indicating strong cash reserves relative to current liabilities during these periods. A significant decline occurs starting in early 2022, with values declining below 1.0, which may reflect reduced cash holdings or increased liabilities. Despite some recovery efforts in late 2022 and early 2023, the ratio stabilizes slightly above 1.0, suggesting the company maintains sufficient cash to cover current liabilities but with less excess cash relative to previous high points.
Current Ratio
Zoetis Inc., current ratio calculation (quarterly data)
| 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 | 6,359) | 6,343) | 6,222) | 6,183) | 6,269) | 7,506) | 6,551) | 6,651) | 6,837) | 6,930) | 6,682) | 7,048) | 6,794) | 6,611) | 6,757) | 6,285) | 4,772) | ||||||
| Current liabilities | 1,909) | 1,889) | 1,608) | 1,769) | 1,915) | 3,167) | 2,880) | 3,051) | 3,034) | 1,797) | 1,471) | 2,091) | 2,066) | 2,170) | 2,400) | 1,811) | 1,721) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Current ratio1 | 3.33 | 3.36 | 3.87 | 3.50 | 3.27 | 2.37 | 2.27 | 2.18 | 2.25 | 3.86 | 4.54 | 3.37 | 3.29 | 3.05 | 2.82 | 3.47 | 2.77 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | 0.94 | 0.87 | 0.96 | 0.89 | 0.96 | 0.96 | 0.93 | 0.84 | 0.82 | 0.79 | 1.01 | 0.91 | 0.83 | — | — | — | — | ||||||
| Amgen Inc. | 1.42 | 1.65 | 2.86 | 2.77 | 3.14 | 1.41 | 1.68 | 1.53 | 1.44 | 1.59 | 1.64 | 1.31 | 1.66 | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 1.11 | 1.43 | 1.18 | 1.39 | 1.42 | 1.25 | 1.42 | 1.44 | 1.32 | 1.52 | 1.47 | 1.54 | 1.56 | — | — | — | — | ||||||
| Danaher Corp. | 1.85 | 1.68 | 2.26 | 2.08 | 1.89 | 1.89 | 1.78 | 1.75 | 1.68 | 1.43 | 1.48 | 2.26 | 2.05 | — | — | — | — | ||||||
| Eli Lilly & Co. | 1.35 | 0.94 | 1.05 | 1.13 | 1.30 | 1.05 | 1.13 | 1.10 | 1.27 | 1.23 | 1.30 | 1.15 | 1.42 | — | — | — | — | ||||||
| Gilead Sciences Inc. | 1.08 | 1.43 | 1.34 | 1.02 | 1.28 | 1.29 | 1.30 | 1.43 | 1.48 | 1.27 | 1.37 | 1.36 | 1.37 | — | — | — | — | ||||||
| Johnson & Johnson | 1.17 | 1.16 | 1.21 | 1.12 | 1.07 | 0.99 | 1.43 | 1.42 | 1.39 | 1.35 | 1.34 | 1.39 | 1.28 | — | — | — | — | ||||||
| Merck & Co. Inc. | 1.25 | 1.25 | 1.38 | 1.28 | 1.44 | 1.47 | 1.46 | 1.39 | 1.40 | 1.27 | 1.31 | 1.31 | 1.02 | — | — | — | — | ||||||
| Pfizer Inc. | 1.05 | 0.91 | 2.38 | 2.12 | 1.37 | 1.22 | 1.59 | 1.42 | 1.39 | 1.40 | 1.39 | 1.37 | 1.48 | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 5.27 | 5.69 | 5.18 | 5.45 | 5.45 | 5.06 | 5.36 | 5.12 | 4.76 | 3.56 | 3.71 | 3.57 | 3.12 | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 1.70 | 1.75 | 1.63 | 1.42 | 1.27 | 1.48 | 1.74 | 1.65 | 1.56 | 1.50 | 3.19 | 2.78 | 2.53 | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 3.50 | 3.99 | 4.08 | 4.14 | 4.28 | 4.83 | 4.70 | 4.50 | 4.75 | 4.46 | 4.62 | 4.61 | 4.39 | — | — | — | — | ||||||
Based on: 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 Q1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,359 ÷ 1,909 = 3.33
2 Click competitor name to see calculations.
- Current Assets
- Current assets displayed a general upward trend from March 2020 through December 2022, increasing from 4,772 million USD to a peak of 7,506 million USD. Following this peak, there was a noticeable decline in current assets during the first half of 2023, with values falling to around 6,183 million USD by June 2023. The latter part of 2023 and early 2024 showed a modest recovery, stabilizing near 6,359 million USD. This pattern suggests periods of asset accumulation possibly related to increased operational activities or liquidity management, followed by a phase of asset reduction or consolidation.
- Current Liabilities
- Current liabilities fluctuated significantly over the analyzed period. Initially, they rose moderately from 1,721 million USD in early 2020 to over 2,400 million USD by September 2020, before decreasing to 1,471 million USD at the end of 2021. A sharp increase was observed in early 2022, peaking at 3,167 million USD by December 2022. Subsequently, liabilities declined substantially during 2023, reaching 1,608 million USD by September, then slightly increased toward the end of the year and into early 2024. These variations indicate cycles of short-term obligations potentially influenced by financing activities, operational cycle shifts, or strategic cash management.
- Current Ratio
- The current ratio demonstrated notable variability but remained above the threshold of 2 throughout most of the periods, indicating generally sound short-term liquidity. Starting at 2.77 in March 2020, it rose significantly to a peak of 4.54 by September 2021, evidencing strong coverage of current liabilities by current assets during that time. In early 2022, the ratio dropped sharply to around 2.18 but regained strength over 2023, stabilizing between 3.27 and 3.87, with a slight decrease to 3.33 in March 2024. This ratio behavior suggests enhanced liquidity management in the middle periods and a return to moderate but stable liquidity in recent quarters.
Quick Ratio
Zoetis Inc., quick ratio calculation (quarterly data)
| 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 cash equivalents | 1,975) | 2,041) | 1,754) | 1,717) | 2,109) | 3,581) | 2,507) | 2,652) | 3,135) | 3,485) | 3,274) | 3,658) | 3,602) | 3,604) | 3,654) | 3,353) | 1,951) | ||||||
| Short-term investments | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Accounts receivable, less allowance for doubtful accounts | 1,293) | 1,304) | 1,257) | 1,322) | 1,186) | 1,215) | 1,189) | 1,291) | 1,222) | 1,133) | 1,152) | 1,170) | 1,125) | 1,013) | 1,012) | 984) | 965) | ||||||
| Total quick assets | 3,268) | 3,345) | 3,011) | 3,039) | 3,295) | 4,796) | 3,696) | 3,943) | 4,357) | 4,618) | 4,426) | 4,828) | 4,727) | 4,617) | 4,666) | 4,337) | 2,916) | ||||||
| Current liabilities | 1,909) | 1,889) | 1,608) | 1,769) | 1,915) | 3,167) | 2,880) | 3,051) | 3,034) | 1,797) | 1,471) | 2,091) | 2,066) | 2,170) | 2,400) | 1,811) | 1,721) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Quick ratio1 | 1.71 | 1.77 | 1.87 | 1.72 | 1.72 | 1.51 | 1.28 | 1.29 | 1.44 | 2.57 | 3.01 | 2.31 | 2.29 | 2.13 | 1.94 | 2.39 | 1.69 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | 0.72 | 0.63 | 0.71 | 0.63 | 0.66 | 0.69 | 0.69 | 0.61 | 0.56 | 0.56 | 0.75 | 0.65 | 0.61 | — | — | — | — | ||||||
| Amgen Inc. | 0.84 | 0.99 | 2.41 | 2.34 | 2.62 | 0.95 | 1.17 | 0.99 | 0.90 | 1.06 | 1.19 | 0.86 | 1.16 | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 0.78 | 1.04 | 0.77 | 0.94 | 1.01 | 0.87 | 0.98 | 1.07 | 1.03 | 1.20 | 1.16 | 1.16 | 1.25 | — | — | — | — | ||||||
| Danaher Corp. | 1.34 | 1.18 | 1.76 | 1.52 | 1.34 | 1.30 | 1.19 | 1.13 | 1.08 | 0.89 | 0.93 | 1.67 | 1.51 | — | — | — | — | ||||||
| Eli Lilly & Co. | 0.68 | 0.52 | 0.58 | 0.63 | 0.79 | 0.63 | 0.71 | 0.67 | 0.77 | 0.80 | 0.79 | 0.67 | 0.83 | — | — | — | — | ||||||
| Gilead Sciences Inc. | 0.72 | 1.06 | 0.98 | 0.78 | 0.95 | 0.99 | 0.96 | 1.06 | 1.06 | 0.95 | 1.01 | 1.05 | 0.99 | — | — | — | — | ||||||
| Johnson & Johnson | 0.84 | 0.82 | 0.86 | 0.84 | 0.81 | 0.71 | 1.10 | 1.09 | 1.06 | 1.04 | 1.03 | 1.04 | 0.97 | — | — | — | — | ||||||
| Merck & Co. Inc. | 0.68 | 0.68 | 0.83 | 0.74 | 0.90 | 0.93 | 0.90 | 0.85 | 0.84 | 0.73 | 0.78 | 0.75 | 0.58 | — | — | — | — | ||||||
| Pfizer Inc. | 0.57 | 0.50 | 1.78 | 1.59 | 0.88 | 0.80 | 1.18 | 1.02 | 0.95 | 1.00 | 0.99 | 0.91 | 0.88 | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 4.40 | 4.82 | 4.31 | 4.53 | 4.54 | 4.16 | 4.37 | 4.20 | 3.95 | 2.98 | 3.03 | 2.92 | 2.39 | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 1.19 | 1.27 | 1.13 | 0.89 | 0.80 | 1.06 | 1.06 | 0.98 | 0.97 | 1.00 | 2.37 | 1.92 | 1.70 | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 3.15 | 3.60 | 3.74 | 3.82 | 3.95 | 4.46 | 4.28 | 4.14 | 4.37 | 4.04 | 4.21 | 4.16 | 4.06 | — | — | — | — | ||||||
Based on: 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 Q1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,268 ÷ 1,909 = 1.71
2 Click competitor name to see calculations.
- Quick Assets Trend
- The total quick assets exhibited variability over the given periods. Starting at $2,916 million in March 2020, there was a general increase reaching a peak around $4,828 million in June 2021. Following this peak, a notable decline occurred with values dropping to the range of approximately $3,000 to $3,300 million in the most recent quarters, suggesting fluctuating liquidity positions.
- Current Liabilities Trend
- Current liabilities demonstrated significant fluctuations over the timeline. Initial values were around $1,721 million in March 2020, increasing sharply to a high of approximately $3,167 million in December 2022. However, there was a marked decrease towards the end of the period, reducing to near $1,909 million by March 2024. This volatility indicates changing short-term obligations and possibly diverse operational or financial activities influencing liabilities.
- Quick Ratio Analysis
- The quick ratio, an indicator of short-term liquidity, showed considerable variation across the quarters. From a starting point of 1.69 in March 2020, it increased with some fluctuations to reach a peak above 3.0 in September 2021, indicating strong liquidity during that period. Following this peak, the ratio declined sharply to values near 1.28 in late 2022, then slightly improved to a level around 1.7 by early 2024. Despite the fluctuations, the ratio stayed above 1.0 throughout, suggesting the company maintained sufficient quick assets to cover its current liabilities consistently.
- Overall Insights
- The data reflects a financial position characterized by fluctuations in liquidity and short-term obligations. The initial strong liquidity position, marked by high quick assets and ratios, diminished notably after mid-2021, partially due to increased current liabilities. Although there was some recovery in the quick ratio towards early 2024, the downward trend in quick assets and the volatility of current liabilities indicate ongoing challenges in balancing liquid resources against short-term debts. These trends may warrant further investigation into operational efficiencies, cash management strategies, and potential impacts from market or business conditions.
Cash Ratio
Zoetis Inc., cash ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 1,975) | 2,041) | 1,754) | 1,717) | 2,109) | 3,581) | 2,507) | 2,652) | 3,135) | 3,485) | 3,274) | 3,658) | 3,602) | 3,604) | 3,654) | 3,353) | 1,951) | ||||||
| Short-term investments | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total cash assets | 1,975) | 2,041) | 1,754) | 1,717) | 2,109) | 3,581) | 2,507) | 2,652) | 3,135) | 3,485) | 3,274) | 3,658) | 3,602) | 3,604) | 3,654) | 3,353) | 1,951) | ||||||
| Current liabilities | 1,909) | 1,889) | 1,608) | 1,769) | 1,915) | 3,167) | 2,880) | 3,051) | 3,034) | 1,797) | 1,471) | 2,091) | 2,066) | 2,170) | 2,400) | 1,811) | 1,721) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Cash ratio1 | 1.03 | 1.08 | 1.09 | 0.97 | 1.10 | 1.13 | 0.87 | 0.87 | 1.03 | 1.94 | 2.23 | 1.75 | 1.74 | 1.66 | 1.52 | 1.85 | 1.13 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | 0.44 | 0.34 | 0.38 | 0.27 | 0.24 | 0.31 | 0.36 | 0.29 | 0.23 | 0.28 | 0.43 | 0.30 | 0.31 | — | — | — | — | ||||||
| Amgen Inc. | 0.49 | 0.60 | 2.05 | 2.00 | 2.22 | 0.59 | 0.80 | 0.57 | 0.51 | 0.66 | 0.87 | 0.55 | 0.82 | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 0.37 | 0.55 | 0.33 | 0.43 | 0.49 | 0.42 | 0.48 | 0.63 | 0.66 | 0.78 | 0.73 | 0.68 | 0.75 | — | — | — | — | ||||||
| Danaher Corp. | 0.90 | 0.71 | 1.31 | 1.02 | 0.85 | 0.71 | 0.64 | 0.53 | 0.49 | 0.32 | 0.35 | 1.07 | 0.93 | — | — | — | — | ||||||
| Eli Lilly & Co. | 0.14 | 0.11 | 0.11 | 0.15 | 0.23 | 0.13 | 0.18 | 0.18 | 0.19 | 0.26 | 0.28 | 0.22 | 0.26 | — | — | — | — | ||||||
| Gilead Sciences Inc. | 0.36 | 0.64 | 0.57 | 0.48 | 0.56 | 0.57 | 0.54 | 0.61 | 0.62 | 0.56 | 0.56 | 0.64 | 0.58 | — | — | — | — | ||||||
| Johnson & Johnson | 0.54 | 0.50 | 0.53 | 0.53 | 0.54 | 0.42 | 0.75 | 0.73 | 0.70 | 0.70 | 0.70 | 0.65 | 0.60 | — | — | — | — | ||||||
| Merck & Co. Inc. | 0.22 | 0.28 | 0.38 | 0.27 | 0.45 | 0.54 | 0.49 | 0.44 | 0.40 | 0.34 | 0.42 | 0.39 | 0.26 | — | — | — | — | ||||||
| Pfizer Inc. | 0.29 | 0.27 | 1.42 | 1.29 | 0.55 | 0.54 | 0.82 | 0.70 | 0.61 | 0.73 | 0.71 | 0.61 | 0.51 | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 2.94 | 3.17 | 2.75 | 2.88 | 2.89 | 2.46 | 2.44 | 2.49 | 2.34 | 1.45 | 1.56 | 1.05 | 1.09 | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 0.52 | 0.58 | 0.43 | 0.22 | 0.22 | 0.50 | 0.26 | 0.17 | 0.23 | 0.33 | 1.55 | 1.01 | 0.80 | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 2.68 | 3.16 | 3.31 | 3.35 | 3.44 | 3.93 | 3.74 | 3.62 | 3.78 | 3.51 | 3.64 | 3.65 | 3.56 | — | — | — | — | ||||||
Based on: 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 Q1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,975 ÷ 1,909 = 1.03
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit an overall fluctuating trend over the periods analyzed. There was a notable increase from the first quarter of 2020 through mid-2020, peaking around June 30, 2020. After this peak, cash assets slightly declined towards the end of 2020 and remained relatively stable into early 2021. Throughout 2021, cash assets experienced moderate declines and recoveries but maintained a general downward trajectory from 2022 onward. The lowest values appeared during the first three quarters of 2023, followed by a slight recovery towards the end of 2023 and early 2024. The value at March 31, 2024, remains lower than the peak levels observed in mid-2020.
- Current Liabilities
- Current liabilities increased significantly from early 2020 through the first quarter of 2022, with some volatility throughout this period. There was a sharp rise reaching a peak at December 31, 2022, indicating increased short-term obligations during this time. However, starting in 2023, current liabilities show a distinct downward trend, reaching lower levels by the end of 2023 and maintaining relatively stable values into early 2024. Despite the decline in 2023, current liabilities at March 31, 2024, remain elevated compared to early 2020.
- Cash Ratio
- The cash ratio exhibited considerable variation over the analyzed periods, reflecting shifts in liquidity management relative to current liabilities. The ratio was relatively strong in mid-2020, peaking at 1.85 and reaching its highest point at 2.23 in late 2021, indicating robust cash coverage against current liabilities during those quarters. However, from 2022 onward, the cash ratio declined, falling below 1.0 in mid-2022 and continuing to hover close to or slightly above one in most subsequent quarters. This decline suggests a reduction in short-term liquidity relative to liabilities compared to prior years, though the company maintained a cash ratio above or near 1.0, implying that cash assets were generally sufficient to cover current liabilities.