Allegheny Technologies Incorporated (ATI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,208,500 | 977,100 | 963,900 | 856,400 | 653,300 |
| Quick ratio | 0.60 | 0.76 | 0.61 | 1.35 | 1.74 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($721,200K
+ $—K
+ $—K)
÷ $1,208,500K
= 0.60
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates the company has enough liquid assets to cover its current liabilities.
Looking at Allegheny Technologies Incorporated's quick ratio over the past five years, we observe a decreasing trend. In 2020, the quick ratio was 1.74, signaling a strong ability to cover its short-term obligations with liquid assets. However, this ratio decreased to 1.35 in 2021, indicating a slight weakening in the company's liquidity position.
The quick ratio declined significantly in 2022 to 0.61, raising concerns about Allegheny Technologies' ability to meet its short-term obligations with readily available assets. Although the ratio improved in 2023 to 0.76, it remained below 1, suggesting continued liquidity challenges.
By the end of 2024, the quick ratio decreased further to 0.60, indicating a persistent liquidity strain for Allegheny Technologies Incorporated. This trend may signal potential difficulties in meeting short-term financial obligations with the available liquid assets.
Overall, the declining trend in the quick ratio for Allegheny Technologies Incorporated reflects a potential liquidity risk and highlights the importance of monitoring the company's ability to manage its short-term financial obligations effectively.