Howmet Aerospace Inc (HWM)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 564,000 | 475,000 | 753,000 | 534,000 | 610,000 | 424,000 | 535,000 | 537,000 | 791,000 | 453,000 | 537,000 | 520,000 | 720,000 | 724,000 | 715,000 | 1,238,000 | 1,610,000 | 1,365,000 | 1,281,000 | 2,591,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,549,000 | 1,517,000 | 2,358,000 | 1,698,000 | 1,784,000 | 1,454,000 | 1,410,000 | 1,403,000 | 1,482,000 | 1,381,000 | 1,322,000 | 1,255,000 | 1,253,000 | 1,208,000 | 1,227,000 | 1,680,000 | 1,660,000 | 1,577,000 | 1,658,000 | 4,107,000 |
| Cash ratio | 0.36 | 0.31 | 0.32 | 0.31 | 0.34 | 0.29 | 0.38 | 0.38 | 0.53 | 0.33 | 0.41 | 0.41 | 0.57 | 0.60 | 0.58 | 0.74 | 0.97 | 0.87 | 0.77 | 0.63 |
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 exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio measures the ability of a company to cover its short-term liabilities with its available cash and cash equivalents.
Initially, the cash ratio increased from 0.63 on March 31, 2020, to a peak of 0.97 on December 31, 2020. This indicates that the company had a higher level of cash reserves relative to its current liabilities during this period.
Subsequently, the cash ratio experienced a decline, reaching its lowest point of 0.29 on September 30, 2023. This suggests a decrease in the company's ability to cover its short-term obligations with its cash holdings during that period.
Towards the end of the period, the cash ratio slightly improved to 0.36 by December 31, 2024. Although still lower than the levels seen earlier, this uptick indicates a slight enhancement in the company's ability to meet its short-term liabilities with available cash by the end of the analyzed period.
Overall, the fluctuation in Howmet Aerospace's cash ratio reflects changes in its liquidity position and highlights the importance of maintaining an appropriate level of cash reserves to meet short-term obligations effectively.
Peer comparison
Dec 31, 2024