Alcoa Corp (AA)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 944,000 | 926,000 | 990,000 | 1,138,000 | 1,363,000 | 1,432,000 | 1,638,000 | 1,554,000 | 1,814,000 | 1,452,000 | 1,652,000 | 2,544,000 | 1,607,000 | 1,736,000 | 965,000 | 829,000 | 879,000 | 841,000 | 834,000 | 1,017,000 |
| Short-term investments | US$ in thousands | 29,000 | 33,000 | 93,000 | 106,000 | -21,000 | 207,000 | 224,000 | — | — | 1,146,000 | 1,113,000 | 1,055 | 1,051 | 1,034 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,030,000 | 2,624,000 | 2,596,000 | 2,785,000 | 3,004,000 | 2,954,000 | 3,236,000 | 3,466,000 | 3,223,000 | 2,929,000 | 2,671,000 | 3,221,000 | 2,761,000 | 2,303,000 | 2,241,000 | 2,223,000 | 2,563,000 | 2,455,000 | 2,531,000 | 2,803,000 |
| Cash ratio | 0.32 | 0.37 | 0.42 | 0.45 | 0.45 | 0.55 | 0.58 | 0.45 | 0.56 | 0.89 | 1.04 | 0.79 | 0.58 | 0.75 | 0.43 | 0.37 | 0.34 | 0.34 | 0.33 | 0.36 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($944,000K
+ $29,000K)
÷ $3,030,000K
= 0.32
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet its short-term obligations.
Analyzing Alcoa Corp's cash ratio over the past eight quarters, we observe a decreasing trend from 0.71 in Q2 2022 to 0.47 in Q4 2023. This trend indicates a potential decrease in the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
Although the cash ratio has shown fluctuations over the quarters, it remains above 0.5, indicating that Alcoa Corp has maintained a reasonable level of liquidity and is generally able to meet its short-term obligations. However, the declining trend warrants further monitoring to assess if the company's liquidity position may be under pressure in the future.
Peer comparison
Dec 31, 2023