Allegheny Technologies Incorporated (ATI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 743,900 | 584,000 | 687,700 | 645,900 | 490,800 |
| Short-term investments | US$ in thousands | — | 1,400 | 464,900 | 487,700 | 300,000 |
| Total current liabilities | US$ in thousands | 977,100 | 963,900 | 856,400 | 653,300 | 849,200 |
| Cash ratio | 0.76 | 0.61 | 1.35 | 1.74 | 0.93 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($743,900K
+ $—K)
÷ $977,100K
= 0.76
The cash ratio of ATI Inc has fluctuated over the past five years, ranging from a low of 0.70 in 2019 to a high of 1.11 in 2020. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents.
A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of capital. In 2020, ATI Inc had a high cash ratio of 1.11, indicating a robust cash position relative to its short-term liabilities.
On the other hand, the cash ratio dropped to 0.70 in 2019, which could be a sign of potential liquidity challenges if short-term liabilities were to increase suddenly.
Overall, it is essential for ATI Inc to maintain a healthy cash ratio to ensure liquidity and financial stability. Monitoring the trend of the cash ratio over time can provide valuable insights into the company's financial health and ability to meet its short-term obligations.