Alcoa Corp (AA)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,405,000 | 5,250,000 | 5,026,000 | 4,520,000 | 3,530,000 |
| Total current liabilities | US$ in thousands | 3,030,000 | 3,004,000 | 3,223,000 | 2,761,000 | 2,563,000 |
| Current ratio | 1.45 | 1.75 | 1.56 | 1.64 | 1.38 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,405,000K ÷ $3,030,000K
= 1.45
The current ratio of Alcoa Corp has exhibited some fluctuation over the past five years. As of December 31, 2023, the current ratio stands at 1.45, which indicates that the company may have slightly weaker short-term liquidity compared to the previous year.
In 2022, the current ratio was higher at 1.75, suggesting that Alcoa Corp had a stronger ability to meet its short-term obligations with its current assets. The ratio then decreased to 1.56 in 2021 before rising to 1.64 in 2020.
The current ratio measures a company's ability to cover its short-term liabilities with its current assets. A ratio above 1.0 indicates that a company has more current assets than current liabilities. Although the current ratio of Alcoa Corp has fluctuated in recent years, it has generally remained above 1.0, indicating that the company has typically been able to meet its short-term obligations.
It is important for Alcoa Corp to closely monitor its current ratio to ensure that it maintains sufficient liquidity for ongoing operations and to meet its financial obligations in the short term.
Peer comparison
Dec 31, 2023