Alcoa Corp (AA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,395,000 | 3,030,000 | 3,004,000 | 3,223,000 | 2,761,000 |
| Quick ratio | 0.34 | 0.32 | 0.45 | 0.57 | 0.59 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,138,000K
+ $—K
+ $—K)
÷ $3,395,000K
= 0.34
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A ratio below 1 indicates that the company may have difficulty covering its current liabilities with its quick assets.
Analyzing Alcoa Corp's quick ratio over the years reveals a declining trend. Starting at 0.59 in December 2020, the ratio dropped to 0.57 in December 2021, decreased further to 0.45 in December 2022, and then to 0.32 in December 2023. However, there was a slight improvement to 0.34 in December 2024.
The decreasing trend in the quick ratio raises concerns about Alcoa Corp's liquidity position and its ability to promptly meet its short-term financial obligations. It suggests that the company may need to carefully manage its liquidity and working capital to ensure it can meet its immediate payment requirements. Investors and creditors may monitor this ratio closely to assess the company's financial health and liquidity risk.
Peer comparison
Dec 31, 2024