Alcoa Corp (AA)

Quick ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash US$ in thousands 1,138,000 1,313,000 1,396,000 1,358,000 976,000 926,000 990,000 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
Short-term investments US$ in thousands 5,000 38,000 22,000 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
Receivables US$ in thousands
Total current liabilities US$ in thousands 3,395,000 3,459,000 3,166,000 3,041,000 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 2,276,000 2,241,000 2,223,000
Quick ratio 0.34 0.38 0.45 0.45 0.33 0.37 0.42 0.45 0.45 0.55 0.58 0.45 0.56 0.89 1.04 0.79 0.58 0.76 0.43 0.37

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 of Alcoa Corp has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

The quick ratio started at a low of 0.37 on March 31, 2020, indicating a potential liquidity issue, but gradually improved over time, reaching a peak of 1.04 on June 30, 2021. This improvement suggests that Alcoa Corp was better able to cover its short-term liabilities with its quick assets during this period.

However, the quick ratio dipped again to 0.33 by December 31, 2023, before slightly recovering to 0.34 by December 31, 2024. These lower ratios indicate a potential decrease in the company's ability to meet its short-term obligations with its quick assets, which may signal liquidity challenges.

Overall, it is important for Alcoa Corp to closely monitor its quick ratio to ensure it maintains a healthy level of liquidity to meet its short-term financial commitments.


Peer comparison

Dec 31, 2024

Company name
Symbol
Quick ratio
Alcoa Corp
AA
0.34
Century Aluminum Company
CENX
0.26