Materion Corporation (MTRN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 16,713 | 13,294 | 13,101 | 14,462 | 25,878 |
| Short-term investments | US$ in thousands | — | 3,658 | 3,114 | — | — |
| Receivables | US$ in thousands | 193,793 | 192,747 | 215,211 | 223,553 | 166,447 |
| Total current liabilities | US$ in thousands | 226,734 | 254,995 | 238,964 | 204,509 | 126,884 |
| Quick ratio | 0.93 | 0.82 | 0.97 | 1.16 | 1.52 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($16,713K
+ $—K
+ $193,793K)
÷ $226,734K
= 0.93
The quick ratio of Materion Corporation has shown a gradual decline over the past five years, decreasing from 1.52 in December 2020 to 0.93 in December 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that Materion has sufficient liquid assets to cover its short-term liabilities. However, the decreasing trend in the quick ratio may raise concerns about the company's liquidity position and ability to meet its short-term financial obligations. Further analysis of Materion's cash management practices and working capital efficiency may be needed to address the declining trend in the quick ratio.