Allegheny Technologies Incorporated (ATI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,945,000 | 2,737,700 | 2,476,400 | 2,306,700 | 2,066,000 |
| Total current liabilities | US$ in thousands | 1,208,500 | 977,100 | 963,900 | 856,400 | 653,300 |
| Current ratio | 2.44 | 2.80 | 2.57 | 2.69 | 3.16 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,945,000K ÷ $1,208,500K
= 2.44
The current ratio of Allegheny Technologies Incorporated has exhibited a generally stable trend over the past five years, declining from 3.16 in December 2020 to 2.44 in December 2024. This ratio indicates the company's ability to meet its short-term obligations with its current assets.
A current ratio above 1.0 typically suggests that a company is able to cover its short-term liabilities with its current assets. Throughout the period in question, Allegheny Technologies Incorporated consistently maintained a current ratio above 1.0, indicating a strong liquidity position.
However, the gradual decline in the current ratio over the years may raise concerns about the company's ability to cover its short-term obligations comfortably. It is essential for investors and stakeholders to monitor this ratio closely to ensure the company maintains a healthy balance between current assets and current liabilities.