Allegheny Technologies Incorporated (ATI)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 721,200 | 406,600 | 425,600 | 394,400 | 743,900 | 432,900 | 267,100 | 196,200 | 584,000 | 329,100 | 274,000 | 316,700 | 687,700 | 1,006,800 | 472,500 | 541,700 | 645,900 | 572,200 | 539,100 | 639,000 |
| Short-term investments | US$ in thousands | — | — | — | 400 | 700 | 1,200 | 1,500 | 1,300 | 1,400 | 1,100 | 500 | 100 | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,208,500 | 945,300 | 1,245,600 | 897,100 | 977,100 | 829,300 | 897,500 | 824,000 | 963,900 | 822,800 | 799,900 | 877,200 | 856,400 | 1,207,300 | 599,100 | 689,200 | 653,300 | 563,700 | 614,400 | 1,059,200 |
| Cash ratio | 0.60 | 0.43 | 0.34 | 0.44 | 0.76 | 0.52 | 0.30 | 0.24 | 0.61 | 0.40 | 0.34 | 0.36 | 0.80 | 0.83 | 0.79 | 0.79 | 0.99 | 1.02 | 0.88 | 0.60 |
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 fluctuations over the past few years, ranging from a low of 0.24 to a high of 1.02. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash available to meet its obligations.
Looking at the trend, we observe that the cash ratio increased steadily from March 31, 2020, to September 30, 2021, reaching its peak at 1.02. However, post-September 2021, the cash ratio started to decline, indicating a potential decrease in the company's liquidity position. The ratio dropped to as low as 0.24 by March 31, 2023, before recovering slightly in the following quarters.
Overall, while the company has maintained a cash ratio above 1 for most periods, suggesting a relatively strong liquidity position, the recent downward trend raises concerns about its ability to cover short-term liabilities with readily available cash. Further analysis and monitoring of the cash management practices of Allegheny Technologies Incorporated would be advisable to understand the underlying factors driving these fluctuations in the cash ratio.