American Axle & Manufacturing (AXL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 552,900 | 519,900 | 511,500 | 530,200 | 557,000 |
| Short-term investments | US$ in thousands | — | — | 2,400 | 1,900 | 4,900 |
| Total current liabilities | US$ in thousands | 1,175,200 | 1,201,600 | 1,199,300 | 1,039,900 | 979,300 |
| Cash ratio | 0.47 | 0.43 | 0.43 | 0.51 | 0.57 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($552,900K
+ $—K)
÷ $1,175,200K
= 0.47
The cash ratio of American Axle & Manufacturing has shown a declining trend over the years based on the provided data. As of December 31, 2020, the cash ratio was 0.57, indicating that the company had $0.57 in cash and cash equivalents for every dollar of current liabilities. By December 31, 2024, the cash ratio had decreased to 0.47, suggesting a decrease in the company's liquidity position.
Although the cash ratio fluctuated slightly between 2021 and 2023, the overall trend indicates a decreasing ability to cover short-term liabilities with cash and cash equivalents. This might be a cause for concern as a lower cash ratio could signify potential liquidity constraints and the need for better management of cash resources to meet immediate obligations.
It would be prudent for stakeholders and investors to closely monitor American Axle & Manufacturing's liquidity position and assess the company's ability to generate sufficient cash flow to support its operations and financial obligations in the future.
Peer comparison
Dec 31, 2024