Kaiser Aluminum Corporation (KALU)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 82,400 | 57,400 | 303,200 | 780,300 | 264,300 |
| Short-term investments | US$ in thousands | — | — | — | — | 78,700 |
| Receivables | US$ in thousands | 325,200 | 297,200 | 332,700 | 112,800 | 167,100 |
| Total current liabilities | US$ in thousands | 370,000 | 418,700 | 456,700 | 158,300 | 170,400 |
| Quick ratio | 1.10 | 0.85 | 1.39 | 5.64 | 2.99 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($82,400K
+ $—K
+ $325,200K)
÷ $370,000K
= 1.10
The quick ratio of Kaiser Aluminum Corp has fluctuated over the past five years, ranging from 1.24 to 6.12. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities.
In 2023, the quick ratio improved to 1.39 from 1.24 in 2022, signaling a stronger ability to meet short-term obligations with its most liquid assets. However, it remains below the levels seen in 2021 and earlier.
The sharp decrease in the quick ratio in 2020 to 6.12 may have been influenced by temporary factors such as a significant increase in current assets or a decrease in current liabilities. This exceptionally high ratio suggests an exceptionally strong liquidity position at that time.
Overall, fluctuations in the quick ratio of Kaiser Aluminum Corp over the years indicate varying levels of liquidity and the company's ability to manage its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2023