American Axle & Manufacturing (AXL)

Cash ratio

		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 and cash equivalents	US$ in thousands	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	532,000	375,100	248,800	252,100
Short-term investments	US$ in thousands	—	200	4,500	1,100	2,400	2,500	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	1,026,400	1,237,100	1,267,100	1,391,500
Cash ratio		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	0.52	0.71	0.56	0.52	0.30	0.20	0.18

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($519,900K + $—K) ÷ $1,201,600K
= 0.43

The cash ratio of American Axle & Manufacturing Holdings Inc has fluctuated over the last eight quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In Q1 2022, the cash ratio was at its highest at 0.61, indicating that the company had $0.61 in cash and cash equivalents for every $1 of current liabilities. This suggests a strong ability to meet short-term obligations at that time.

However, in subsequent quarters, the cash ratio decreased, reaching its lowest point of 0.52 in Q3 2022. This decline could indicate potential difficulties in meeting short-term obligations with available cash in those quarters.

The cash ratio then experienced some fluctuations in the following quarters but remained relatively stable around 0.54 to 0.64. This stability suggests that the company's ability to cover short-term liabilities improved compared to the low point in Q3 2022.

Overall, the trend in the cash ratio for American Axle & Manufacturing Holdings Inc shows a mix of strength and challenges in managing short-term cash and liquidity needs. It would be important to monitor future changes in the cash ratio to assess the company's liquidity position and financial health.