Allegheny Technologies Incorporated (ATI)

Liquidity ratios

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
Current ratio 2.80 3.13 2.74 2.81 2.57 2.88 2.89 2.61 2.69 2.23 3.33 3.04 3.16 3.70 3.58 2.37 2.71 3.17 2.98 2.87
Quick ratio 1.40 1.35 1.09 1.12 1.21 1.23 1.13 1.00 1.35 1.25 1.39 1.40 1.52 1.70 1.66 1.16 1.23 1.45 1.14 1.03
Cash ratio 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 0.58 0.67 0.37 0.29

ATI Inc's liquidity ratios show a fluctuating trend over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged from a low of 2.57 to a high of 3.13. Although the current ratio has displayed some variability, it has generally remained above 2, indicating that ATI Inc has had sufficient current assets to meet its short-term liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown a similar trend as the current ratio, fluctuating between 1.18 and 1.53. This implies that ATI Inc may have faced some challenges in quickly converting its current assets into cash to cover its short-term obligations in certain quarters, but overall, the company has remained relatively liquid.

The cash ratio, which provides the most conservative estimate of liquidity by considering only cash and cash equivalents to cover current liabilities, has also exhibited variability, ranging from 0.36 to 0.89. This suggests that ATI Inc may have had periods where its ability to cover short-term obligations with cash on hand was more constrained.

Overall, ATI Inc's liquidity ratios indicate that the company has generally maintained a strong liquidity position, with the current and quick ratios consistently above 1 and at levels that suggest the company can meet its short-term obligations comfortably. However, the variability in the ratios over the past eight quarters highlights the importance of actively managing liquidity to ensure stable financial performance.

Additional liquidity measure

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 conversion cycle days 124.82 153.29 154.58 152.48 125.20 163.79 178.77 180.06 157.44 209.77 200.60 169.24 142.37 126.55 126.35 126.62 109.68 123.56 127.26 128.65

The cash conversion cycle of ATI Inc fluctuated over the past eight quarters, ranging from a low of 130.22 days in Q4 2022 to a high of 183.88 days in Q1 2022. The trend indicates variability in the company's efficiency in converting its resources into cash. The cycle duration decreased from Q1 2022 through Q4 2022, showing improved operational efficiency. However, from Q1 2023 through Q3 2023, there was an upward trend in the cash conversion cycle, which suggests potential challenges in managing working capital effectively. Overall, ATI Inc should focus on optimizing inventory management, accounts receivable, and accounts payable processes to improve its cash conversion cycle and enhance liquidity.