Peabody Energy Corp (BTU)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 700,400 | 969,300 | 1,307,300 | 954,300 | 709,200 |
| Short-term investments | US$ in thousands | — | 651,700 | — | — | 140,000 |
| Total current liabilities | US$ in thousands | 827,500 | 979,000 | 918,700 | 914,500 | 771,200 |
| Cash ratio | 0.85 | 1.66 | 1.42 | 1.04 | 1.10 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($700,400K
+ $—K)
÷ $827,500K
= 0.85
The cash ratio of Peabody Energy Corp has shown fluctuations over the years. As of December 31, 2020, the cash ratio was 1.10, indicating that the company had $1.10 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased slightly to 1.04 by December 31, 2021, which may suggest a tighter liquidity position.
However, the cash ratio improved significantly by December 31, 2022, reaching 1.42, indicating better liquidity and the ability to cover short-term obligations more comfortably. The trend continued upwards, with the cash ratio further improving to 1.66 by December 31, 2023, reflecting a stronger financial position and a healthier liquidity position.
Interestingly, the cash ratio dropped notably to 0.85 by December 31, 2024, which might raise concerns about the company's ability to meet its short-term obligations with its available cash resources. This decline could be attributed to various factors such as changes in cash management practices, investment decisions, or operational challenges.
Overall, while the trend in the cash ratio of Peabody Energy Corp has been somewhat volatile, the company experienced a period of improved liquidity followed by a decline in recent years. It would be important for stakeholders to monitor this ratio closely to assess the company's ability to manage its short-term financial commitments effectively.
Peer comparison
Dec 31, 2024