Kaiser Aluminum Corporation (KALU)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 82,400 | 57,400 | 303,200 | 780,300 | 264,300 |
| Short-term investments | US$ in thousands | — | — | — | — | 78,700 |
| Total current liabilities | US$ in thousands | 370,000 | 418,700 | 456,700 | 158,300 | 170,400 |
| Cash ratio | 0.22 | 0.14 | 0.66 | 4.93 | 2.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($82,400K
+ $—K)
÷ $370,000K
= 0.22
The cash ratio of Kaiser Aluminum Corp has shown significant fluctuations over the past five years. The cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents.
In 2023, the cash ratio was 0.47, indicating that Kaiser Aluminum Corp had $0.47 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement from the previous year's ratio of 0.35, suggesting a strengthening liquidity position.
The cash ratio in 2021 was relatively high at 0.91, indicating the company had adequate cash reserves to cover its short-term obligations. However, there was a significant decline in the cash ratio in 2020 to 5.34, which could be a result of a decrease in current liabilities or an increase in cash holdings.
The most notable observation is the cash ratio in 2019, which was 2.45. This indicates that Kaiser Aluminum Corp had a higher level of liquidity compared to the other years analyzed.
Overall, fluctuations in the cash ratio of Kaiser Aluminum Corp may reflect changes in the company's cash position, current liabilities, or a combination of both. A lower cash ratio suggests a lower liquidity position, while a higher ratio indicates a stronger ability to cover short-term obligations with available cash resources.
Peer comparison
Dec 31, 2023