Arcadium Lithium has a quick ratio of 0.65. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Arcadium Lithium's Quick Ratio or its related term are showing as below:
ALTM'
s Quick Ratio Range Over the Past 10 Years
Min: 0.49 Med: 1.87 Max: 4.31
Current: 0.65
During the past 8 years, Arcadium Lithium's highest Quick Ratio was 4.31. The lowest was 0.49. And the median was 1.87.
ALTM's Quick Ratio is ranked worse than 86.05% of 1563
companies
in the Chemicals industry
Industry Median: 1.37
vs ALTM: 0.65
Arcadium Lithium Quick Ratio Historical Data
The historical data trend for Arcadium Lithium's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Arcadium Lithium's Quick Ratio
For the Specialty Chemicals subindustry, Arcadium Lithium's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arcadium Lithium's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Arcadium Lithium's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Arcadium Lithium's Quick Ratio falls into.
Arcadium Lithium Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Arcadium Lithium's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Arcadium Lithium (NYSE:ALTM) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Arcadium Lithium Quick Ratio Related Terms
Thank you for viewing the detailed overview of Arcadium Lithium's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Arcadium Lithium is a pure-play lithium producer that was formed by the Allkem-Livent merger in January 2024. The company agreed to a deal for Arcadium to be acquired by Rio Tinto in an all-cash transaction that should close in 2025. Arcadium should benefit from increased lithium demand via higher electric vehicle adoption, as lithium is a key component of EV batteries. The company's low-cost lithium carbonate production comes from two brine resources in Argentina. Arcadium also produces spodumene, a hard rock lithium upstream concentrate, from a mine in Australia and operates downstream lithium hydroxide conversion plants in the United States and China.
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