Howmet Aerospace Inc (HWM)
Cash ratio
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 1,577,000 | 1,321,000 | 1,357,000 | 1,319,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 71,000 | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 4,125,000 | 4,460,000 | 3,621,000 | 3,659,000 |
| Cash ratio | 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 | 0.40 | 0.30 | 0.37 | 0.36 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($610,000K
+ $—K)
÷ $1,784,000K
= 0.34
Based on the data provided, the cash ratio of Howmet Aerospace Inc has fluctuated over the last eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a better ability to meet short-term obligations without relying on external sources of financing.
In Q4 2023, the cash ratio was 0.48, showing a decrease from the previous quarter at 0.44. This suggests that the company had slightly less cash available relative to its short-term liabilities compared to the previous quarter.
Comparing the current cash ratio to the same quarter in the previous year, there has been a noticeable decline. In Q4 2022, the cash ratio was 0.67, indicating a stronger position in terms of liquidity compared to Q4 2023.
Overall, while the company's cash ratio has shown some volatility, it is important to assess the trend over time to understand if there are underlying financial challenges that may impact Howmet Aerospace Inc's ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023