Kaiser Aluminum Corporation (KALU)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 976,400 | 990,200 | 1,042,600 | 1,205,400 | 1,121,400 |
| Total current liabilities | US$ in thousands | 400,600 | 370,000 | 418,700 | 456,700 | 158,300 |
| Current ratio | 2.44 | 2.68 | 2.49 | 2.64 | 7.08 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $976,400K ÷ $400,600K
= 2.44
Based on the provided data, Kaiser Aluminum Corporation's current ratio has exhibited a declining trend over the past five years. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, stood at 7.08 on December 31, 2020, indicating a strong liquidity position. However, by the end of 2024, the current ratio had decreased to 2.44, reflecting a reduction in the company's ability to cover its short-term liabilities with its current assets.
This downward trend in the current ratio suggests that Kaiser Aluminum Corporation may be experiencing challenges in managing its short-term liquidity effectively. A current ratio below the industry average of around 2:1 may raise concerns about the company's financial health and ability to meet its short-term obligations. It is advisable for investors and stakeholders to closely monitor Kaiser Aluminum Corporation's liquidity position and assess the effectiveness of its working capital management strategies to ensure financial stability in the future.
Peer comparison
Dec 31, 2024