Kaiser Aluminum Corporation (KALU)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 2.44 2.60 2.55 2.66 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
Quick ratio 0.05 0.12 0.18 0.26 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
Cash ratio 0.05 0.12 0.18 0.26 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

The Current Ratio of Kaiser Aluminum Corporation has shown a declining trend from 4.05 in March 2020 to 2.44 in December 2024. This indicates a decrease in the company's ability to cover its short-term obligations with its current assets over the period.

The Quick Ratio, also known as the Acid-Test Ratio, reflects a more conservative measure of liquidity as it excludes inventory from current assets. Kaiser Aluminum's Quick Ratio has fluctuated significantly, ranging from 0.05 in December 2024 to 5.27 in September 2020. The downward trend in the Quick Ratio suggests a potential strain on the company's ability to meet its short-term liabilities with its most liquid assets.

The Cash Ratio, which is the most stringent liquidity measure focusing solely on cash and cash equivalents, has also shown a decreasing trend for Kaiser Aluminum. It declined from 4.93 in December 2020 to 0.05 in December 2024. This indicates the company's decreasing ability to cover its short-term liabilities using only cash and cash equivalents.

Overall, the liquidity ratios for Kaiser Aluminum Corporation suggest a weakening liquidity position over the period under review, with declining current, quick, and cash ratios indicating potential challenges in meeting short-term financial obligations.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 66.21 62.65 59.26 61.93 60.83 60.62 61.18 62.28 58.34 59.49 52.09 51.52 60.53 78.93 97.72 145.03 55.84 54.41 57.77 58.02

The cash conversion cycle of Kaiser Aluminum Corporation has shown some fluctuation over the periods presented. The company's cash conversion cycle, which measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, was relatively stable between March 2020 and December 2021, fluctuating between around 54 to 60 days.

However, there was a significant increase in the cash conversion cycle in March 2021, reaching 145.03 days, which indicated a delay in the company's ability to convert its assets into cash during that period. This could potentially be attributed to various factors such as increased inventory levels, slower collection of receivables, or delays in the payables cycle.

Subsequently, the cash conversion cycle improved gradually from June 2021 to December 2024, with the cycle ranging between approximately 52 to 66 days. This improvement suggests that the company was able to manage its working capital more effectively, leading to a quicker conversion of assets into cash during the later periods.

Overall, monitoring the cash conversion cycle of Kaiser Aluminum Corporation is crucial for assessing its efficiency in managing its working capital and liquidity. An increasing cash conversion cycle may indicate potential challenges in managing inventory, receivables, and payables efficiently, while a decreasing cycle may reflect improvements in the company's operations and cash flow management.