Metallus, Inc (MTUS)

Metallus, Inc's liquidity ratios indicate a generally improving liquidity position over the years.

1. Current Ratio:
- The current ratio, which measures the company's ability to cover short-term obligations with current assets, has increased steadily from 1.98 in 2020 to 2.09 in 2024. This indicates that the company has been able to enhance its short-term liquidity position, with a ratio above 1 indicating the company can cover its current liabilities with current assets.

2. Quick Ratio:
- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown an upward trend from 0.57 in 2020 to 0.86 in 2024. This improvement suggests that the company is becoming more effective in meeting its short-term obligations using only its most liquid assets.

3. Cash Ratio:
- The cash ratio, which focuses solely on the ability to cover short-term liabilities with cash and cash equivalents, has remained relatively stable over the years, ranging between 0.57 and 1.38. This indicates that the company has maintained a reasonable reserve of liquid assets to meet its immediate payment obligations.

Overall, the increasing current and quick ratios reflect a strengthening liquidity position for Metallus, Inc, indicating improved financial health and ability to meet its short-term financial commitments. However, it's important to keep an eye on the fluctuations in these ratios to ensure continued liquidity management.

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Additional liquidity measure

The cash conversion cycle of Metallus, Inc has fluctuated over the past five years. In 2020, the company took 79.89 days to convert its investments in inventory and accounts receivable into cash. This figure improved to 72.42 days in 2021, indicating a more efficient management of working capital. The cycle further decreased to 58.37 days in 2022, reflecting a significant improvement in cash management.

However, in 2023, there was a slight increase in the cash conversion cycle to 70.77 days, suggesting a potential slowdown in the company's cash conversion efficiency. This trend continued in 2024, with the cycle increasing to 81.34 days, indicating a longer time taken to convert investments into cash compared to the previous year.

Overall, the cash conversion cycle data reveals that Metallus, Inc experienced variations in its efficiency in managing working capital over the analyzed period. Further analysis of the underlying reasons for these fluctuations would be beneficial to understand the company's performance and identify areas for improvement.