Axalta Coating Systems Ltd (AXTA)
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 | 699,800 | 605,800 | 517,600 | 512,100 | 645,200 | 517,400 | 500,200 | 576,200 | 840,600 | 627,700 | 1,230,900 | 1,266,900 | 1,360,900 | 1,341,300 | 1,123,600 | 657,200 | 1,017,500 | 767,200 | 577,300 | 501,100 |
| Short-term investments | US$ in thousands | — | 800 | 1,200 | 500 | 2,300 | 7,100 | 4,500 | — | — | — | — | — | 1,700 | — | — | — | 1,600 | — | — | — |
| Total current liabilities | US$ in thousands | 1,427,500 | 1,358,300 | 1,329,200 | 1,279,700 | 1,384,700 | 1,349,700 | 1,333,400 | 1,345,000 | 1,334,900 | 1,276,600 | 1,216,200 | 1,190,100 | 1,180,900 | 1,065,200 | 860,900 | 1,007,200 | 1,072,900 | 1,034,900 | 996,800 | 1,021,500 |
| Cash ratio | 0.49 | 0.45 | 0.39 | 0.40 | 0.47 | 0.39 | 0.38 | 0.43 | 0.63 | 0.49 | 1.01 | 1.06 | 1.15 | 1.26 | 1.31 | 0.65 | 0.95 | 0.74 | 0.58 | 0.49 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($699,800K
+ $—K)
÷ $1,427,500K
= 0.49
The cash ratio of Axalta Coating Systems Ltd has shown some fluctuation over the past eight quarters. In Q4 2023, the cash ratio stood at 0.57, indicating that the company had $0.57 of cash and cash equivalents for every $1 of current liabilities. This was a slight increase from the previous quarter's ratio of 0.54.
The cash ratio ranged from 0.49 to 0.57 throughout the eight quarters analyzed. Generally, a higher cash ratio is seen as more favorable as it suggests the company has a stronger ability to cover its short-term liabilities with its available cash reserves.
It is worth noting that although there were fluctuations in the cash ratio over the period, it remained within a relatively close range, indicating a consistent level of liquidity maintained by Axalta Coating Systems Ltd. This may suggest effective cash management practices by the company.
Peer comparison
Dec 31, 2023