Metallus Inc (MTUS)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	280,600	257,200	259,600	102,800	27,100
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	113,500	81,600	100,500	63,300	77,500
Total current liabilities	US$ in thousands	248,400	186,700	250,800	181,000	112,300
Quick ratio		1.59	1.81	1.44	0.92	0.93

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($280,600K + $—K + $113,500K) ÷ $248,400K
= 1.59

The quick ratio of Metallus Inc has shown some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets.

In 2023, the quick ratio of 1.59 indicates that the company had $1.59 in quick assets (cash, marketable securities, accounts receivable) available to cover each dollar of current liabilities, showing an improvement from the previous year. This suggests that Metallus Inc has a strong ability to meet its short-term obligations using its liquid assets.

Comparing to 2022 and 2021, where the quick ratio was 1.81 and 1.44 respectively, we can see a downward trend in 2021 and then an improvement in 2022. This fluctuation may indicate changes in the company's liquidity position over those years.

Furthermore, in 2020 and 2019, the quick ratio was considerably lower at 0.92 and 0.93 respectively, below the ideal quick ratio of 1. This suggests that in those years, the company may have had difficulties meeting its short-term liabilities with its available quick assets.

Overall, the recent increase in the quick ratio in 2023 is a positive sign for Metallus Inc's liquidity position, showing an improvement in the company's ability to cover its short-term obligations with its most liquid assets. However, it is essential to monitor this ratio over time to ensure the company's continued financial health and stability.