American Axle & Manufacturing (AXL)

Cash ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash and cash equivalents US$ in thousands 552,900 542,500 519,900 469,800 519,900 615,600 511,100 465,700 511,500 472,300 501,400 529,900 530,200 500,700 587,700 601,200 557,000 537,300 893,300 682,700
Short-term investments US$ in thousands — — — — — 200 4,500 1,100 2,400 2,500 — 600 1,900 3,400 2,700 4,000 4,900 5,600 6,000 4,900
Total current liabilities US$ in thousands 1,175,200 1,294,200 1,255,100 1,235,600 1,201,600 1,248,700 1,233,600 1,198,000 1,199,300 1,214,300 1,213,700 1,153,700 1,039,900 1,003,200 1,152,100 1,042,100 979,300 1,024,300 1,260,300 1,218,700
Cash ratio 0.47 0.42 0.41 0.38 0.43 0.49 0.42 0.39 0.43 0.39 0.41 0.46 0.51 0.50 0.51 0.58 0.57 0.53 0.71 0.56

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 for American Axle & Manufacturing has fluctuated over the period from March 31, 2020, to December 31, 2024. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, ranged from a low of 0.39 to a high of 0.71 during this period.

Generally, a higher cash ratio indicates a stronger liquidity position, suggesting that the company has a sufficient amount of cash on hand to meet its short-term obligations. On the other hand, a lower cash ratio may indicate that the company relies more on other current assets or would need to rely on external financing to meet its short-term liabilities.

American Axle & Manufacturing maintained a cash ratio above 0.5 for most of the periods analyzed, which suggests a relatively healthy liquidity position during these times. However, there were fluctuations in the cash ratio values, indicating potential variations in the company's ability to cover its short-term obligations with its available cash reserves.

It is important to further analyze the reasons behind these fluctuations in the cash ratio to assess the company's overall liquidity management and financial health accurately.