Howmet Aerospace Inc (HWM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 564,000 | 610,000 | 791,000 | 720,000 | 1,610,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,549,000 | 1,784,000 | 1,482,000 | 1,253,000 | 1,660,000 |
| Quick ratio | 0.36 | 0.34 | 0.53 | 0.57 | 0.97 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($564,000K
+ $—K
+ $—K)
÷ $1,549,000K
= 0.36
The quick ratio, also known as the acid-test ratio, measures Howmet Aerospace Inc's ability to meet its short-term obligations with its most liquid assets. The trend of the quick ratio from December 31, 2020, to December 31, 2024, reveals a slight decline over the period. Starting at 0.97 in 2020, the ratio decreased to 0.57 in 2021, and continued to drop to 0.53 in 2022. By December 31, 2023, the quick ratio fell further to 0.34, indicating a potential liquidity challenge. However, there was a slight improvement to 0.36 as of December 31, 2024. This decreasing trend may raise concerns about Howmet Aerospace Inc's ability to cover its short-term obligations with its quick assets in the near future. It is essential for the company to monitor its liquidity closely and take necessary steps to maintain a healthy quick ratio to meet its financial commitments effectively.
Peer comparison
Dec 31, 2024