Commercial Metals Company (CMC)
Cash ratio
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 192,461 | 120,315 |
| Short-term investments | US$ in thousands | — | 453,457 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 694,590 | 704,258 |
| Cash ratio | 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 | 0.28 | 0.17 |
February 29, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($638,261K
+ $—K)
÷ $762,547K
= 0.84
The cash ratio of Commercial Metals Company has shown variability over the past several quarters. The ratio indicates the company's ability to meet its short-term liabilities using its cash and cash equivalents. A higher cash ratio signifies a stronger liquidity position.
Analyzing the trend, we observe fluctuations in the cash ratio. The ratio was relatively high at 1.47 in November 2023, indicating a strong ability to cover short-term obligations with cash on hand. However, it decreased significantly to 0.30 in May 2022, suggesting a potential liquidity challenge during that period. The ratio improved to 1.03 in February 2022 and remained above 0.50 in subsequent periods, indicating a more stable liquidity position.
It's important to note that a cash ratio of less than 1 may indicate that the company may have difficulty meeting its short-term obligations solely from its cash resources. Therefore, investors and analysts should monitor the trend of the cash ratio over time to assess the company's liquidity risk and financial health.
Peer comparison
Feb 29, 2024