Century Aluminum Company (CENX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 32,900 | 88,800 | 54,300 | 29,000 | 81,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 463,700 | 763,000 | 410,700 | 547,400 | 240,300 |
| Cash ratio | 0.07 | 0.12 | 0.13 | 0.05 | 0.34 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($32,900K
+ $—K)
÷ $463,700K
= 0.07
Based on the provided data for Century Aluminum Company's cash ratio for the years 2020 to 2024, we observe a fluctuating trend in the company's ability to cover its short-term liabilities with cash and cash equivalents.
In 2020, the cash ratio stood at 0.34, indicating that Century Aluminum had $0.34 in cash and cash equivalents for every $1 of short-term liabilities, reflecting a strong liquidity position. However, this ratio dropped significantly to 0.05 in 2021, suggesting a substantial decrease in the company's ability to meet its immediate financial obligations with cash on hand.
Although there was a slight improvement in 2022 with a cash ratio of 0.13, indicating a better liquidity position compared to the previous year, the ratio dipped slightly to 0.12 in 2023. This suggests that the company may still face challenges in meeting short-term liabilities solely with its available cash reserves.
Furthermore, the cash ratio declined further to 0.07 in 2024, signaling a potential strain on Century Aluminum's liquidity position and its ability to cover short-term obligations with cash and cash equivalents.
Overall, the fluctuating trend in Century Aluminum Company's cash ratio over the years indicates varying levels of liquidity and highlights the importance of closely monitoring the company's cash management practices to ensure its ability to meet short-term financial commitments.
Peer comparison
Dec 31, 2024