Kaiser Aluminum Corporation (KALU)
Quick ratio
| 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 | US$ in thousands | 18,400 | 45,700 | 70,400 | 101,600 | 82,400 | 44,600 | 19,800 | 31,500 | 57,400 | 129,300 | 235,200 | 261,000 | 303,200 | 295,700 | 283,100 | 128,000 | 780,300 | 750,100 | 710,600 | 307,200 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0 | 0 | 0 | 39,300 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 400,600 | 382,200 | 396,400 | 384,700 | 370,000 | 367,000 | 354,700 | 405,900 | 418,700 | 468,200 | 547,500 | 554,600 | 456,700 | 444,800 | 439,500 | 350,400 | 158,300 | 142,200 | 150,400 | 199,100 |
| 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 |
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 of Kaiser Aluminum Corporation has demonstrated fluctuations over the past few years. The ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, stood at a healthy level of 1.74 as of March 31, 2020. This indicates that the company had $1.74 in liquid assets available to cover each dollar of its current liabilities.
However, the quick ratio spiked significantly to 4.72 by June 30, 2020, and further increased to 5.27 by September 30, 2020, suggesting a strong ability to meet short-term obligations. Subsequently, the ratio declined to 4.93 by the end of December 2020, still indicating a healthy liquidity position.
The trend reversed dramatically in the following periods, with a sharp drop in the quick ratio to 0.37 by March 31, 2021, and further decreased to 0.64 by June 30, 2021. This downward trend continued into the next quarters, with the quick ratio hovering around 0.6 levels until September 30, 2021.
From December 31, 2021, to March 31, 2024, the quick ratio fluctuated within a range of 0.05 to 0.47, indicating a decline in the company's ability to cover its short-term obligations with liquid assets. The ratio touched its lowest point of 0.05 by the end of December 31, 2024, implying potential liquidity challenges.
Overall, the quick ratio analysis suggests that Kaiser Aluminum Corporation experienced a significant decrease in liquidity from 2021 to 2024, which may raise concerns about the company's ability to meet its short-term financial obligations using its current liquid assets. Monitoring and improving liquidity management practices could be crucial for the company to maintain financial stability and meet its obligations in the future.
Peer comparison
Dec 31, 2024