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