Albemarle Corp (ALB)

Cash 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 and cash equivalents	US$ in thousands	889,900	1,601,670	1,599,740	1,586,730	1,499,140	1,382,800	930,596	463,325	439,272	595,049	823,572	569,859	746,724	702,073	736,696	553,228	613,110	317,823	398,183	465,274
Short-term investments	US$ in thousands	168,928	243,149	194,724	177,503	5,890	12,197	—	—	897,708	902,504	907,080	663,448	35	27	24	20	32	29	30	30
Total current liabilities	US$ in thousands	3,560,460	3,941,610	4,291,510	3,505,370	2,741,020	2,487,950	1,781,760	2,103,340	1,874,340	1,591,040	984,928	953,256	1,801,850	1,612,740	1,420,800	1,192,930	1,409,000	1,421,240	1,399,980	1,278,190
Cash ratio		0.30	0.47	0.42	0.50	0.55	0.56	0.52	0.22	0.71	0.94	1.76	1.29	0.41	0.44	0.52	0.46	0.44	0.22	0.28	0.36

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($889,900K + $168,928K) ÷ $3,560,460K
= 0.30

The cash ratio measures a company's ability to cover its current liabilities using its cash and cash equivalents. It is calculated by dividing the company's cash and cash equivalents by its current liabilities. A higher cash ratio indicates a stronger ability to cover short-term obligations with available cash.

Analyzing Albemarle Corp.'s cash ratio data provided in the table, we see fluctuations over the past eight quarters. The cash ratio ranged from a low of 0.28 in Q1 2022 to a high of 0.61 in Q4 2022 and Q3 2022.

In general, Albemarle Corp. has maintained a relatively healthy cash ratio above 0.50 in recent quarters, indicating a strong ability to meet its short-term obligations through available cash reserves. This suggests that the company has a solid liquidity position and is less likely to face liquidity issues in the near term.

However, it is important to note the decrease in the cash ratio from Q1 to Q3 2023, where it dropped from 0.52 to 0.51, and then to 0.47. This downtrend may signify a slight reduction in the company's ability to cover its current liabilities with cash. It would be prudent to keep an eye on this trend in future quarters to ensure that the company's liquidity position remains robust.

Overall, while there have been some fluctuations in Albemarle Corp.'s cash ratio over the past eight quarters, the company has generally maintained a healthy cash position relative to its current liabilities. It is essential for investors and stakeholders to continue monitoring this ratio alongside other financial metrics to assess the company's overall financial health and liquidity management.