Alcoa Corp (AA)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,138,000 | 944,000 | 1,363,000 | 1,814,000 | 1,607,000 |
| Short-term investments | US$ in thousands | — | 29,000 | -21,000 | 14,000 | 21,000 |
| Total current liabilities | US$ in thousands | 3,395,000 | 3,030,000 | 3,004,000 | 3,223,000 | 2,761,000 |
| Cash ratio | 0.34 | 0.32 | 0.45 | 0.57 | 0.59 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,138,000K
+ $—K)
÷ $3,395,000K
= 0.34
The cash ratio for Alcoa Corp has shown a declining trend over the past five years, with values decreasing from 0.59 in December 31, 2020, to 0.34 in December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened over this period. The decreasing trend of the cash ratio may suggest potential liquidity challenges for Alcoa Corp if this trend continues in the future. It would be prudent for stakeholders to closely monitor the company's liquidity position and management of cash resources.
Peer comparison
Dec 31, 2024