Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Keurig Dr Pepper Inc., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Current ratio | 0.47 | 0.31 | 0.35 | 0.38 | |
| Quick ratio | 0.26 | 0.17 | 0.19 | 0.22 | |
| Cash ratio | 0.09 | 0.03 | 0.02 | 0.02 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Keurig Dr Pepper Inc. current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Keurig Dr Pepper Inc. quick ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Keurig Dr Pepper Inc. cash ratio improved from 2019 to 2020 and from 2020 to 2021. |
Current Ratio
Keurig Dr Pepper Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Current assets | 3,057) | 2,388) | 2,273) | 2,159) | |
| Current liabilities | 6,485) | 7,694) | 6,474) | 5,702) | |
| Liquidity Ratio | |||||
| Current ratio1 | 0.47 | 0.31 | 0.35 | 0.38 | |
| Benchmarks | |||||
| Current Ratio, Competitors2 | |||||
| Altria Group Inc. | 0.71 | 0.79 | 0.59 | — | |
| Coca-Cola Co. | 1.13 | 1.32 | 0.76 | — | |
| PepsiCo Inc. | 0.83 | 0.98 | 0.86 | — | |
| Philip Morris International Inc. | 0.92 | 1.10 | 1.09 | — | |
| Current Ratio, Sector | |||||
| Food, Beverage & Tobacco | 0.92 | 1.06 | 0.85 | — | |
| Current Ratio, Industry | |||||
| Consumer Staples | 0.93 | 0.93 | 0.83 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 3,057 ÷ 6,485 = 0.47
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Keurig Dr Pepper Inc. current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Quick Ratio
Keurig Dr Pepper Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Cash and cash equivalents | 567) | 240) | 75) | 83) | |
| Restricted cash and restricted cash equivalents | 1) | 15) | 26) | 46) | |
| Trade accounts receivable, net | 1,148) | 1,048) | 1,115) | 1,150) | |
| Total quick assets | 1,716) | 1,303) | 1,216) | 1,279) | |
| Current liabilities | 6,485) | 7,694) | 6,474) | 5,702) | |
| Liquidity Ratio | |||||
| Quick ratio1 | 0.26 | 0.17 | 0.19 | 0.22 | |
| Benchmarks | |||||
| Quick Ratio, Competitors2 | |||||
| Altria Group Inc. | 0.54 | 0.56 | 0.28 | — | |
| Coca-Cola Co. | 0.81 | 0.96 | 0.56 | — | |
| PepsiCo Inc. | 0.56 | 0.77 | 0.66 | — | |
| Philip Morris International Inc. | 0.44 | 0.56 | 0.56 | — | |
| Quick Ratio, Sector | |||||
| Food, Beverage & Tobacco | 0.59 | 0.72 | 0.56 | — | |
| Quick Ratio, Industry | |||||
| Consumer Staples | 0.43 | 0.47 | 0.38 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,716 ÷ 6,485 = 0.26
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Keurig Dr Pepper Inc. quick ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Cash Ratio
Keurig Dr Pepper Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Cash and cash equivalents | 567) | 240) | 75) | 83) | |
| Restricted cash and restricted cash equivalents | 1) | 15) | 26) | 46) | |
| Total cash assets | 568) | 255) | 101) | 129) | |
| Current liabilities | 6,485) | 7,694) | 6,474) | 5,702) | |
| Liquidity Ratio | |||||
| Cash ratio1 | 0.09 | 0.03 | 0.02 | 0.02 | |
| Benchmarks | |||||
| Cash Ratio, Competitors2 | |||||
| Altria Group Inc. | 0.53 | 0.55 | 0.26 | — | |
| Coca-Cola Co. | 0.63 | 0.75 | 0.41 | — | |
| PepsiCo Inc. | 0.23 | 0.41 | 0.28 | — | |
| Philip Morris International Inc. | 0.23 | 0.37 | 0.36 | — | |
| Cash Ratio, Sector | |||||
| Food, Beverage & Tobacco | 0.37 | 0.49 | 0.35 | — | |
| Cash Ratio, Industry | |||||
| Consumer Staples | 0.31 | 0.34 | 0.25 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 568 ÷ 6,485 = 0.09
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Keurig Dr Pepper Inc. cash ratio improved from 2019 to 2020 and from 2020 to 2021. |