Albemarle Corp (ALB)

Cash 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 and cash equivalents	US$ in thousands	1,192,230	1,664,520	1,830,230	2,055,810	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
Short-term investments	US$ in thousands	17,910	22,747	27,730	44,234	168,928	243,149	194,724	177,503	5,890	12,197	—	—	897,708	902,504	907,080	663,448	35	27	24	20
Total current liabilities	US$ in thousands	1,966,460	1,910,720	1,958,460	2,050,700	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
Cash ratio		0.62	0.88	0.95	1.02	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

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,192,230K + $17,910K) ÷ $1,966,460K
= 0.62

The cash ratio of Albemarle Corp has fluctuated over the period of analysis, ranging from a low of 0.22 on March 31, 2022, to a high of 1.76 on June 30, 2021. The cash ratio measures the company's ability to cover its current liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off short-term obligations using cash on hand.

Looking at the trend of the cash ratio, we can see that it experienced considerable volatility, with peaks and troughs occurring at irregular intervals. The ratio exceeded 1 on several occasions, indicating that the company had more than enough cash to cover its short-term debts during those periods.

It is important to note that having a very high cash ratio may not always be ideal as it could suggest that the company is not efficiently utilizing its cash resources. Conversely, a very low cash ratio could indicate liquidity issues and potential difficulties in meeting short-term obligations.

Overall, the cash ratio of Albemarle Corp shows variability over time, reflecting fluctuations in the company's cash position and its ability to manage short-term obligations effectively. It is essential for investors and analysts to monitor this ratio along with other financial metrics to gain a comprehensive understanding of the company's financial health and liquidity position.