Kaiser Aluminum Corporation (KALU)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 18,400 | 82,400 | 57,400 | 303,200 | 780,300 |
| Short-term investments | US$ in thousands | — | — | — | — | 0 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 400,600 | 370,000 | 418,700 | 456,700 | 158,300 |
| Quick ratio | 0.05 | 0.22 | 0.14 | 0.66 | 4.93 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($18,400K
+ $—K
+ $—K)
÷ $400,600K
= 0.05
The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. In the case of Kaiser Aluminum Corporation, the quick ratio has seen a significant decline over the years.
As of December 31, 2020, the quick ratio stood at a healthy 4.93, indicating a strong ability to cover short-term liabilities with liquid assets. However, by December 31, 2024, the quick ratio has dropped substantially to 0.05. This suggests a potential liquidity issue as the company may struggle to meet its immediate financial obligations with its current liquid assets.
The declining trend in the quick ratio may be a cause for concern for investors and creditors, as it indicates a weakening financial position in terms of short-term liquidity. It is essential for Kaiser Aluminum Corporation to closely monitor and manage its liquidity position to ensure its ability to meet its short-term obligations in a timely manner.
Peer comparison
Dec 31, 2024