Peabody Energy Corp (BTU)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 969,300 1,307,300 954,300 709,200 732,200
Short-term investments US$ in thousands 140,000
Total current liabilities US$ in thousands 979,000 918,700 931,700 790,600 975,300
Cash ratio 0.99 1.42 1.02 1.07 0.75

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($969,300K + $—K) ÷ $979,000K
= 0.99

The cash ratio of Peabody Energy Corp has fluctuated over the past five years, ranging from 0.75 to 1.42. The ratio indicates the company's ability to cover its short-term obligations solely with its cash and cash equivalents. A higher cash ratio typically suggests a stronger liquidity position, as the company holds more cash relative to its current liabilities.

In 2022, the cash ratio was at its highest level of 1.42, indicating a notably strong liquidity position. However, in 2019, the ratio was at its lowest point of 0.75, suggesting a relatively weaker ability to cover short-term obligations with cash alone.

Overall, the trend over the five-year period shows some variability in Peabody Energy Corp's liquidity position, and it could be valuable for stakeholders to monitor this ratio closely to assess the company's ability to meet its short-term financial obligations with readily available cash resources.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash ratio
Peabody Energy Corp
BTU
0.99
Alpha Metallurgical Resources Inc
AMR
0.87
Arch Resources Inc
ARCH
0.87