Carpenter Technology Corporation (CRS)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	199,100	44,500	154,200	287,400	193,100
Short-term investments	US$ in thousands	—	—	—	—	1,200
Total current liabilities	US$ in thousands	466,300	459,400	375,600	306,300	452,100
Cash ratio		0.43	0.10	0.41	0.94	0.43

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($199,100K + $—K) ÷ $466,300K
= 0.43

The cash ratio of Carpenter Technology Corporation has fluctuated over the past five years, ranging from a low of 0.10 in 2023 to a high of 0.94 in 2021. The cash ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents.

In 2024, the cash ratio improved to 0.43, indicating that Carpenter Technology has increased its liquidity compared to the previous year. This suggests that the company had a higher level of cash and cash equivalents relative to its current liabilities, which can provide a cushion in case of financial difficulties.

While the cash ratio is an important indicator of short-term liquidity, it is essential to consider other financial ratios and factors to gain a comprehensive understanding of Carpenter Technology's financial health and operational performance. Overall, the improvement in the cash ratio in 2024 is a positive sign for the company's liquidity position.