Kaiser Aluminum Corporation (KALU)

Liquidity ratios

	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
Current ratio	2.68	2.68	2.81	2.61	2.49	2.41	2.28	2.38	2.64	2.75	2.73	2.66	7.08	7.80	7.37	4.05	4.58	3.80	3.63	3.29
Quick ratio	1.10	1.08	1.08	0.98	0.85	0.94	1.07	1.25	1.39	1.48	1.53	1.24	5.64	6.11	5.57	2.62	2.99	2.19	1.82	1.63
Cash ratio	0.22	0.12	0.06	0.08	0.14	0.28	0.43	0.47	0.66	0.66	0.64	0.37	4.93	5.27	4.72	1.74	2.01	1.12	0.82	0.67

The liquidity ratios for Kaiser Aluminum Corp indicate the company's ability to meet its short-term obligations and the level of its liquid assets.

The current ratio for Q4 2023 stands at 2.68, which is consistent with the previous quarter and higher than the ratios in the previous year. This suggests that Kaiser Aluminum Corp has a healthy level of current assets relative to its current liabilities, providing a good buffer to cover short-term obligations.

The quick ratio, which excludes inventory from current assets, was 1.39 in Q4 2023. Although slightly lower than the previous quarter, the quick ratio remains above 1, indicating that the company can meet its short-term liabilities without relying heavily on inventory liquidation.

The cash ratio for Q4 2023 is 0.47, showing a decrease from the previous quarter but still above 0.35 from the same period last year. This ratio reveals Kaiser Aluminum Corp's ability to cover its current liabilities with its most liquid assets, mainly cash and cash equivalents.

Overall, the liquidity ratios of Kaiser Aluminum Corp demonstrate a strong position in managing short-term financial obligations, with consistent current and quick ratios above industry standards and a sufficient cash ratio to weather any unforeseen liquidity challenges.

Additional liquidity measure

		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 conversion cycle	days	68.34	72.37	75.36	71.03	56.97	56.06	43.25	48.51	56.06	81.24	105.53	152.64	61.32	66.71	71.57	67.25	65.47	73.92	79.48	75.63

Kaiser Aluminum Corp's cash conversion cycle has shown fluctuating trends over the past eight quarters, ranging from a low of 47.98 days in Q2 2022 to a high of 78.45 days in Q2 2023. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cycle indicates a more efficient use of working capital.

In the recent quarters, there was an upward trend in the cash conversion cycle, starting from Q1 2023 to Q3 2023. This indicates that the company took longer to convert its investments into cash during this period, which may suggest slower sales or higher inventory levels relative to sales.

However, in Q4 2023, there was a slight improvement in the cash conversion cycle compared to the previous quarter, indicating a possible increase in efficiency in managing working capital. It's essential for Kaiser Aluminum Corp to closely monitor and manage its cash conversion cycle to ensure optimal liquidity and profitability levels.