SunCoke Energy Inc (SXC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 140,100 | 90,000 | 63,800 | 48,400 | 97,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 223,800 | 224,000 | 182,200 | 158,900 | 194,800 |
| Cash ratio | 0.63 | 0.40 | 0.35 | 0.30 | 0.50 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($140,100K
+ $—K)
÷ $223,800K
= 0.63
The cash ratio of SunCoke Energy Inc has shown an increasing trend over the past five years. The ratio was 0.51 in 2019, increased to 0.32 in 2020, further improved to 0.37 in 2021, reached 0.42 in 2022, and peaked at 0.65 in 2023.
The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding or selling off assets.
The significant increase in the cash ratio from 0.51 in 2019 to 0.65 in 2023 suggests that SunCoke Energy Inc has been effectively managing its liquidity position and building up its cash reserves over the years. This improvement reflects positively on the company's financial health and its ability to weather unforeseen financial challenges or take advantage of strategic opportunities that may arise.
Peer comparison
Dec 31, 2023