Alcoa Corp (AA)
Quick 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 | 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 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 808,000 | 796,000 | 806,000 | 852,000 | 909,000 | 868,000 | 1,022,000 | 1,050,000 | 884,000 | 861,000 | 744,000 | 677,000 | 556,000 | 611,000 | 507,000 | 665,000 | 660,000 | 824,000 | 887,000 | 942,000 |
| 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 |
| Quick ratio | 0.59 | 0.67 | 0.73 | 0.75 | 0.75 | 0.85 | 0.89 | 0.75 | 0.84 | 1.18 | 1.31 | 1.00 | 0.78 | 1.02 | 0.66 | 0.67 | 0.60 | 0.68 | 0.68 | 0.70 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($944,000K
+ $29,000K
+ $808,000K)
÷ $3,030,000K
= 0.59
The quick ratio of Alcoa Corp has shown a declining trend from Q1 2022 to Q4 2023. The ratio decreased from 1.02 in Q2 2022 to 0.74 in Q4 2023. This indicates a weakening liquidity position, as the company may have insufficient liquid assets to cover its current liabilities.
A quick ratio below 1 suggests that Alcoa Corp may have difficulty meeting its short-term obligations without relying on selling inventory or obtaining additional financing. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its immediate financial obligations. Further investigation into the factors contributing to the declining quick ratio is recommended to address any potential liquidity risks.
Peer comparison
Dec 31, 2023