Amentum Holdings Inc. (AMTM)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 452,000 | 452,000 | 305,000 | 207,000 | — |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,965,000 | 1,965,000 | 1,376,000 | 713,000 | — |
| Cash ratio | 0.23 | 0.23 | 0.22 | 0.29 | — |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($452,000K
+ $—K)
÷ $1,965,000K
= 0.23
The cash ratio of Amentum Holdings Inc. provides insights into the company's ability to cover its short-term liabilities with its cash and cash equivalents. From the data provided, we observe a gradual decrease in the cash ratio over the years, indicating a potential decline in the company's liquidity position.
As of December 31, 2022, the cash ratio stood at 0.29, suggesting that for every $1 of current liabilities, the company had $0.29 in cash and cash equivalents available. By December 31, 2024, the cash ratio remained stable at 0.23, which means the company had $0.23 in cash for every $1 of current liabilities.
While a cash ratio above 1.0 is typically considered healthy, the downward trend in Amentum Holdings Inc.'s cash ratio could raise concerns about its ability to meet short-term obligations solely relying on cash resources. It may indicate a need to assess and improve the company's liquidity management strategies to ensure financial stability and meet ongoing financial obligations.
Peer comparison
Dec 31, 2024