Allegheny Technologies Incorporated (ATI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 743,900 | 584,000 | 687,700 | 645,900 | 490,800 |
| Short-term investments | US$ in thousands | — | 1,400 | 464,900 | 487,700 | 300,000 |
| Receivables | US$ in thousands | 625,000 | 579,200 | 470,000 | 345,800 | 554,100 |
| Total current liabilities | US$ in thousands | 977,100 | 963,900 | 856,400 | 653,300 | 849,200 |
| Quick ratio | 1.40 | 1.21 | 1.89 | 2.26 | 1.58 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($743,900K
+ $—K
+ $625,000K)
÷ $977,100K
= 1.40
The quick ratio of ATI Inc has exhibited some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 generally indicates that the company has an adequate level of liquid assets to cover its short-term liabilities.
In 2023, the quick ratio improved to 1.53 from 1.33 in 2022, signaling an increase in the company's ability to cover its short-term obligations using its liquid assets. This may reflect improved liquidity management or a reduction in short-term liabilities relative to liquid assets.
Comparing the 2023 quick ratio to previous years, it is lower than the ratios in 2020 and 2021 but higher than in 2019, suggesting some variability in the company's short-term liquidity position over time. The company should continue to monitor its quick ratio to ensure it maintains a healthy balance between liquid assets and short-term liabilities to meet its financial obligations effectively.