Howmet Aerospace Inc (HWM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 610,000 | 791,000 | 720,000 | 1,610,000 | 1,577,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 71,000 |
| Receivables | US$ in thousands | 692,000 | 537,000 | 420,000 | 598,000 | 1,451,000 |
| Total current liabilities | US$ in thousands | 1,784,000 | 1,482,000 | 1,253,000 | 1,660,000 | 4,125,000 |
| Quick ratio | 0.73 | 0.90 | 0.91 | 1.33 | 0.75 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($610,000K
+ $—K
+ $692,000K)
÷ $1,784,000K
= 0.73
The quick ratio of Howmet Aerospace Inc has been fluctuating over the past five years, as indicated by the following figures: 0.87 in 2023, 1.04 in 2022, 1.07 in 2021, 1.32 in 2020, and 0.83 in 2019. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term liabilities using only its most liquid assets.
In the case of Howmet Aerospace Inc, the quick ratio has been below 1 in three out of the last five years (2023, 2019), indicating potential liquidity concerns. A ratio above 1 is generally considered favorable as it implies the company can cover its current liabilities with its quick assets. It is important to further investigate the reasons behind the fluctuating quick ratio and assess the company's overall liquidity position in more detail.
Peer comparison
Dec 31, 2023