Howmet Aerospace Inc (HWM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 564,000 | 610,000 | 791,000 | 720,000 | 1,610,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,549,000 | 1,784,000 | 1,482,000 | 1,253,000 | 1,660,000 |
| Cash ratio | 0.36 | 0.34 | 0.53 | 0.57 | 0.97 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($564,000K
+ $—K)
÷ $1,549,000K
= 0.36
The cash ratio of Howmet Aerospace Inc has shown a declining trend over the past five years, decreasing from 0.97 in December 2020 to 0.36 in December 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened over time. A cash ratio below 1 suggests that the company may have difficulties meeting its immediate financial obligations solely through its available cash resources. Management should closely monitor this trend and implement strategies to improve the company's liquidity position to ensure financial stability and resilience in the face of potential cash flow challenges.
Peer comparison
Dec 31, 2024