Commercial Metals Company (CMC)
Cash ratio
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 857,922 | 698,338 | 638,261 | 704,603 | 592,332 | 475,489 | 603,966 | 582,069 | 672,596 | 410,265 | 846,587 | 415,055 | 497,745 | 443,120 | 367,347 | 465,162 | 542,103 | 462,110 | 232,442 | 224,797 |
| Short-term investments | US$ in thousands | — | — | — | 453,457 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 834,850 | 764,954 | 762,547 | 786,955 | 843,714 | 852,944 | 1,066,150 | 1,077,550 | 1,356,990 | 1,390,690 | 825,201 | 892,120 | 980,473 | 853,367 | 674,093 | 613,199 | 745,263 | 627,343 | 649,134 | 601,964 |
| Cash ratio | 1.03 | 0.91 | 0.84 | 1.47 | 0.70 | 0.56 | 0.57 | 0.54 | 0.50 | 0.30 | 1.03 | 0.47 | 0.51 | 0.52 | 0.54 | 0.76 | 0.73 | 0.74 | 0.36 | 0.37 |
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 shown fluctuations over the past few fiscal quarters, varying between 0.30 and 1.47. The cash ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio implies a stronger liquidity position.
In analyzing the trend, we observe that there have been periods where the cash ratio was relatively low, such as in August 2022 and May 2023. This could indicate potential liquidity challenges during those periods. However, the cash ratio improved significantly in November 2023 and August 2024, reaching levels above 1. This suggests a better ability to meet short-term obligations with cash on hand during those periods.
Overall, the trend in Commercial Metals Company's cash ratio indicates some variability in its liquidity position. It would be important for the company to consistently monitor and manage its cash levels to ensure sufficient liquidity to meet its short-term financial obligations.
Peer comparison
Aug 31, 2024