Peabody Energy Corp (BTU)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 700,400 | 969,300 | 1,307,300 | 954,300 | 709,200 |
| Short-term investments | US$ in thousands | — | 651,700 | — | — | 140,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 827,500 | 979,000 | 918,700 | 914,500 | 771,200 |
| Quick ratio | 0.85 | 1.66 | 1.42 | 1.04 | 1.10 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($700,400K
+ $—K
+ $—K)
÷ $827,500K
= 0.85
The quick ratio of Peabody Energy Corp, a measure of short-term liquidity, has seen fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at 1.10, indicating that the company had $1.10 in highly liquid assets available to cover each dollar of current liabilities.
However, by December 31, 2021, the quick ratio had slightly decreased to 1.04, suggesting a slightly tighter liquidity position compared to the previous year.
In the subsequent years, there was an improvement in the quick ratio. By December 31, 2022, the ratio increased notably to 1.42, indicating a healthier liquidity position for the company. This improvement continued into December 31, 2023, where the quick ratio further strengthened to 1.66, reflecting a significant increase in the company's ability to cover short-term obligations with liquid assets.
However, there was a slight decline in the quick ratio by December 31, 2024, where it dropped to 0.85. This could indicate a potential liquidity concern or a change in the company's asset and liability compositions.
Overall, while the quick ratio of Peabody Energy Corp has shown variability over the years, it is important for the company to maintain a healthy balance between highly liquid assets and current liabilities to ensure its short-term solvency and financial stability.
Peer comparison
Dec 31, 2024