AdvanSix Inc (ASIX)

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	29,768	22,110	10,536	1,826	30,985	24,694	17,297	19,306	15,100	7,239	4,251	14,124	10,606	16,686	72,663	30,754	7,050	10,048	17,057	7,803
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	358,918	307,954	300,143	314,960	393,492	350,656	356,344	307,252	309,822	306,140	269,105	259,482	287,037	253,162	226,324	268,680	291,726	286,668	253,727	256,702
Cash ratio		0.08	0.07	0.04	0.01	0.08	0.07	0.05	0.06	0.05	0.02	0.02	0.05	0.04	0.07	0.32	0.11	0.02	0.04	0.07	0.03

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($29,768K + $—K) ÷ $358,918K
= 0.08

The cash ratio of AdvanSix Inc has displayed some fluctuation over the past eight quarters. The ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.

In Q4 2023, the cash ratio was 0.11, indicating that AdvanSix had $0.11 in cash and cash equivalents for every $1 of current liabilities. This was slightly lower than the previous quarter, where the ratio was 0.12. Despite the slight decrease, the company still had a healthy level of cash relative to its short-term obligations.

Looking further back, the cash ratio in Q2 2023 was 0.10, which was consistent with the ratio seen in Q4 2022. There was a significant improvement from Q1 2023 when the ratio was only 0.03, suggesting that AdvanSix may have strengthened its liquidity position during that period.

Comparing Q4 2023 to Q1 2022, there has been overall stability in the cash ratio, hovering around the 0.10 mark. This indicates that AdvanSix has maintained a relatively consistent ability to meet its short-term liabilities with its available cash over the past eight quarters.

Overall, the cash ratio trend of AdvanSix Inc suggests that the company has managed its liquidity effectively, ensuring that it has sufficient cash on hand to cover its short-term obligations.