Arch Resources Inc (ARCH)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 287,807 | 236,059 | 325,194 | 187,492 | 153,020 |
| Short-term investments | US$ in thousands | 32,724 | 36,993 | 14,463 | 96,765 | 135,667 |
| Total current liabilities | US$ in thousands | 367,961 | 426,879 | 522,340 | 290,096 | 310,980 |
| Cash ratio | 0.87 | 0.64 | 0.65 | 0.98 | 0.93 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($287,807K
+ $32,724K)
÷ $367,961K
= 0.87
The cash ratio of Arch Resources Inc has exhibited some fluctuations over the past five years. The ratio stood at 0.87 in 2023, indicating that the company had $0.87 in cash and cash equivalents for every dollar of current liabilities. This represents an improvement compared to 2022 when the ratio was 0.64. It suggests that the company's liquidity position strengthened in 2023.
However, looking at the trend over the five-year period, the cash ratio was highest in 2020 at 0.98, which indicates that the company had a higher level of cash reserves relative to its current liabilities in that year. The ratios for 2021 and 2019 were 0.65 and 0.93, respectively, showing some variability in the company's liquidity position during those years.
Overall, the cash ratio for Arch Resources Inc has fluctuated over the years, with the company demonstrating varying levels of liquidity. It is important for investors and stakeholders to monitor this ratio, as it provides insights into the company's ability to meet its short-term obligations using its cash reserves.
Peer comparison
Dec 31, 2023