Century Aluminum Company (CENX)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 88,800 | 70,300 | 50,600 | 30,400 | 54,300 | 64,800 | 30,000 | 26,600 | 29,000 | 57,600 | 9,000 | 26,300 | 81,600 | 81,400 | 174,100 | 147,600 | 38,900 | 22,500 | 25,700 | 22,200 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 89,900 | 65,300 | 48,800 | 64,300 | 71,700 | 86,800 | 139,200 | 146,300 | 88,900 | 89,300 | 92,700 | 78,700 | 61,300 | 65,600 | 45,700 | 70,700 | 100,200 | 105,200 | 113,700 | 114,700 |
| Total current liabilities | US$ in thousands | 763,000 | 634,000 | 573,400 | 368,900 | 410,700 | 406,100 | 444,800 | 574,000 | 547,400 | 515,500 | 394,400 | 364,300 | 240,300 | 201,200 | 249,600 | 284,900 | 233,700 | 212,300 | 204,600 | 229,600 |
| Quick ratio | 0.23 | 0.21 | 0.17 | 0.26 | 0.31 | 0.37 | 0.38 | 0.30 | 0.22 | 0.28 | 0.26 | 0.29 | 0.59 | 0.73 | 0.88 | 0.77 | 0.60 | 0.60 | 0.68 | 0.60 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($88,800K
+ $—K
+ $89,900K)
÷ $763,000K
= 0.23
The quick ratio of Century Aluminum Company has shown fluctuations over the past few years, ranging from 0.17 to 0.88. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.
The decreasing trend in the quick ratio from 0.68 in March 2019 to 0.17 in June 2023 indicates a potential deterioration in the company's liquidity position. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations without relying on selling inventory.
The quick ratio spiked to 0.88 in June 2020, which could indicate an improvement in the company's short-term liquidity position at that time. However, it is important to examine the underlying reasons for such fluctuations to assess the company's overall financial health.
Overall, the varying quick ratio of Century Aluminum Company highlights the importance of closely monitoring liquidity trends and managing short-term obligations effectively to ensure financial stability and operational continuity.
Peer comparison
Dec 31, 2023