Minerals Technologies Inc (MTX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 333,100 | 317,200 | 247,200 | 299,500 | 367,700 |
| Short-term investments | US$ in thousands | 4,000 | 4,300 | 5,600 | 4,900 | 4,100 |
| Total current liabilities | US$ in thousands | 397,700 | 457,300 | 498,300 | 419,800 | 295,200 |
| Cash ratio | 0.85 | 0.70 | 0.51 | 0.73 | 1.26 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($333,100K
+ $4,000K)
÷ $397,700K
= 0.85
The cash ratio of Minerals Technologies Inc has exhibited some fluctuations over the past five years. As of December 31, 2020, the cash ratio stood at 1.26, indicating that the company had $1.26 in cash and cash equivalents for every dollar of current liabilities.
However, there was a noticeable decrease in the cash ratio to 0.73 by December 31, 2021, suggesting a potential liquidity challenge as the company had $0.73 in cash for every dollar of current liabilities.
The ratio further declined to 0.51 by December 31, 2022, reaching a relatively low level. This could indicate that the company may face difficulties in meeting its short-term obligations with its available cash resources.
By December 31, 2023, the cash ratio improved slightly to 0.70, although it remained below the levels seen in earlier years. This could signify some improvement in the company's liquidity position compared to the previous year.
As of December 31, 2024, the cash ratio further increased to 0.85, indicating a healthier liquidity position compared to the previous years but still not reaching the levels observed in 2020.
Overall, the trend in the cash ratio for Minerals Technologies Inc shows fluctuations, with periods of both improvement and decline in liquidity over the five-year period. Maintaining a balance between cash reserves and current liabilities will be crucial for the company's financial stability and ability to meet short-term obligations.
Peer comparison
Dec 31, 2024