Alcoa Corp (AA)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,914,000 | 4,405,000 | 5,250,000 | 5,026,000 | 4,520,000 |
| Total current liabilities | US$ in thousands | 3,395,000 | 3,030,000 | 3,004,000 | 3,223,000 | 2,761,000 |
| Current ratio | 1.45 | 1.45 | 1.75 | 1.56 | 1.64 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,914,000K ÷ $3,395,000K
= 1.45
Based on the provided data, Alcoa Corp's current ratio has fluctuated over the past five years. The current ratio is a measure of a company's ability to cover its short-term liabilities with its short-term assets.
In December 31, 2020, the current ratio was 1.64, indicating that Alcoa Corp had $1.64 in current assets for every $1 in current liabilities.
It decreased to 1.56 by December 31, 2021, suggesting a slight decrease in liquidity.
The ratio increased to 1.75 by December 31, 2022, demonstrating an improvement in the company's short-term financial position.
However, it then dropped to 1.45 by December 31, 2023, raising concerns about the company's ability to meet short-term obligations.
This ratio remained unchanged at 1.45 by December 31, 2024, indicating that the company still has $1.45 in current assets for every $1 in current liabilities.
Overall, the trend in Alcoa Corp's current ratio suggests some volatility in its short-term liquidity position, with some fluctuations in the ability to cover current liabilities with current assets. It would be important for the company to closely monitor and manage its current assets and liabilities to ensure financial stability.
Peer comparison
Dec 31, 2024