Axalta Coating Systems Ltd (AXTA)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 593,000 | 700,000 | 645,200 | 840,600 | 1,360,900 |
| Short-term investments | US$ in thousands | — | 400 | 2,300 | — | 1,700 |
| Total current liabilities | US$ in thousands | 1,354,000 | 1,428,000 | 1,384,700 | 1,334,900 | 1,180,900 |
| Cash ratio | 0.44 | 0.49 | 0.47 | 0.63 | 1.15 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($593,000K
+ $—K)
÷ $1,354,000K
= 0.44
The cash ratio of Axalta Coating Systems Ltd has exhibited a declining trend over the past five years, decreasing from 1.15 in December 2020 to 0.44 in December 2024. This suggests that the company's ability to cover its short-term liabilities with its cash and cash equivalents has been weakening over the period under consideration. A decreasing cash ratio may indicate potential liquidity challenges that the company may face in meeting its immediate financial obligations. It would be prudent for stakeholders to closely monitor Axalta's liquidity position and management of working capital to ensure the company's financial health and stability.
Peer comparison
Dec 31, 2024