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.