Commercial Metals Company (CMC)

Cash ratio

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Cash and cash equivalents	US$ in thousands	857,922	592,332	672,596	497,745	542,103
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	834,850	843,714	1,356,990	980,473	745,263
Cash ratio		1.03	0.70	0.50	0.51	0.73

August 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($857,922K + $—K) ÷ $834,850K
= 1.03

The cash ratio of Commercial Metals Company has fluctuated over the past five years, ranging from 0.50 to 1.03. The ratio indicates the company's ability to cover its short-term obligations with its available cash and cash equivalents. In 2024, the cash ratio increased to 1.03, reflecting an improvement in the company's liquidity position compared to the previous years. This suggests that Commercial Metals Company has a higher level of cash and cash equivalents available relative to its current liabilities in 2024, providing a stronger cushion to meet short-term obligations. While fluctuations in the cash ratio are common and can be influenced by various factors, the increasing trend in the ratio over the years indicates a potentially better liquidity position for Commercial Metals Company.