Allegheny Technologies Incorporated (ATI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 721,200 | 743,900 | 584,000 | 687,700 | 645,900 |
| Short-term investments | US$ in thousands | — | 700 | 1,400 | 464,900 | 487,700 |
| Total current liabilities | US$ in thousands | 1,208,500 | 977,100 | 963,900 | 856,400 | 653,300 |
| Cash ratio | 0.60 | 0.76 | 0.61 | 1.35 | 1.74 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($721,200K
+ $—K)
÷ $1,208,500K
= 0.60
The cash ratio of Allegheny Technologies Incorporated has shown a declining trend over the years, decreasing from 1.74 on December 31, 2020, to 0.60 on December 31, 2024. This trend indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has weakened over the period under review. A decreasing cash ratio may raise concerns about the firm's liquidity position and its ability to meet its immediate financial obligations without relying on external sources of financing. It would be important for stakeholders to monitor this ratio closely and assess the company's cash management strategies to ensure sufficient liquidity levels for sustained operations.