Materion Corporation (MTRN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 13,294 | 13,101 | 14,462 | 25,878 | 125,007 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 254,995 | 238,964 | 204,509 | 126,884 | 122,440 |
| Cash ratio | 0.05 | 0.05 | 0.07 | 0.20 | 1.02 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($13,294K
+ $—K)
÷ $254,995K
= 0.05
The cash ratio of Materion Corp has fluctuated over the past five years, ranging from 0.21 to 1.20. The cash ratio reflects the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash on hand relative to its current liabilities.
In 2019, Materion Corp had a significantly high cash ratio of 1.20, suggesting a robust liquidity position at that time. However, the cash ratio decreased sharply in the following years, reaching its lowest point of 0.21 in 2021. This may indicate a potential liquidity strain or a decrease in the proportion of cash reserves relative to short-term liabilities during that period.
In 2023, the cash ratio improved to 0.29, indicating a slight enhancement in the company's liquidity compared to the previous year. While the cash ratio has shown some volatility, it is essential for Materion Corp to maintain a healthy balance between cash reserves and short-term liabilities to ensure its ability to meet financial obligations in a timely manner.