Axalta Coating Systems Ltd (AXTA)
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 | 593,000 | 567,000 | 840,000 | 624,000 | 700,000 | 606,000 | 518,000 | 512,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | 400 | 800 | 1,200 | 100 | 2,300 | 7,100 | 4,500 | — | — | — | — | — | 1,700 | — | — | — |
| Total current liabilities | US$ in thousands | 1,354,000 | 1,422,000 | 1,335,000 | 1,332,000 | 1,428,000 | 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 |
| Cash ratio | 0.44 | 0.40 | 0.63 | 0.47 | 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 |
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 fluctuations over the past few years, ranging from a low of 0.38 to a high of 1.31. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using available cash resources.
Analyzing the trend of Axalta's cash ratio, we observe that it peaked in June 2020 at 1.31 before gradually declining to a low of 0.38 in June 2022. Subsequently, the ratio saw some recovery but remained volatile, indicating fluctuations in the company's ability to cover short-term obligations with cash on hand.
It is essential to monitor the cash ratio over time to ensure that the company maintains a sufficient level of liquidity to meet its short-term financial commitments. A consistently low cash ratio may indicate potential liquidity issues, while a consistently high ratio could suggest that the company is not efficiently utilizing its cash resources.
Peer comparison
Dec 31, 2024