Carpenter Technology Corporation (CRS)

Cash ratio

		Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	199,100	53,500	15,700	18,100	44,500	22,300	20,000	52,600	154,200	393,900	96,900	213,200	287,400	244,200	271,400	218,900	193,100	93,000	29,900	24,600
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	1,200	500	200	100
Total current liabilities	US$ in thousands	466,300	453,400	485,700	448,600	459,400	544,000	510,300	410,900	375,600	633,800	294,300	332,400	306,300	269,300	265,800	264,500	452,100	516,000	499,400	466,600
Cash ratio		0.43	0.12	0.03	0.04	0.10	0.04	0.04	0.13	0.41	0.62	0.33	0.64	0.94	0.91	1.02	0.83	0.43	0.18	0.06	0.05

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 few quarters. The cash ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

Looking at the data, we see that the cash ratio ranged from as low as 0.03 in December 2023 to as high as 1.02 in March 2021. The company experienced a significant increase in its cash ratio in the first half of 2021, indicating a stronger ability to cover its short-term obligations with available cash.

However, the cash ratio saw a decline in the following quarters, dropping to 0.12 in March 2024. This decrease could be attributed to various factors such as changes in cash holdings, short-term liabilities, or operating cash flows.

Overall, while the cash ratio of Carpenter Technology Corporation has shown fluctuations, it is important to monitor this ratio closely to ensure the company maintains a healthy liquidity position to meet its short-term obligations effectively.