Materion Corporation (MTRN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 16,713 | 13,294 | 13,101 | 14,462 | 25,878 |
| Short-term investments | US$ in thousands | — | 3,658 | 3,114 | — | — |
| Total current liabilities | US$ in thousands | 226,734 | 254,995 | 238,964 | 204,509 | 126,884 |
| Cash ratio | 0.07 | 0.07 | 0.07 | 0.07 | 0.20 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($16,713K
+ $—K)
÷ $226,734K
= 0.07
The cash ratio of Materion Corporation has exhibited a declining trend over the past five years, dropping from 0.20 in December 2020 to 0.07 in December 2021, and remaining stable at this level through December 2024.
A cash ratio of 0.07 indicates that for every dollar of current liabilities, Materion Corporation holds $0.07 in cash and cash equivalents to cover its short-term obligations. This suggests that the company may have limited liquidity to meet its immediate financial obligations without relying on other sources of funding.
It is important for Materion Corporation to closely monitor its cash position and liquidity management strategies to ensure it maintains adequate cash reserves to safeguard against potential cash flow challenges and unexpected expenses. Management may need to consider optimizing its working capital management, exploring alternative financing options, or implementing cost-saving measures to improve its liquidity position and financial flexibility.