The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Kaiser Aluminum's quick ratio for the quarter that ended in Mar. 2024 was 1.43.
Kaiser Aluminum has a quick ratio of 1.43. It generally indicates good short-term financial strength.
The historical rank and industry rank for Kaiser Aluminum's Quick Ratio or its related term are showing as below:
KALU'
s Quick Ratio Range Over the Past 10 Years
Min: 1.24 Med: 2.03 Max: 6.7
Current: 1.43
During the past 13 years, Kaiser Aluminum's highest Quick Ratio was 6.70. The lowest was 1.24. And the median was 2.03.
KALU's Quick Ratio is ranked worse than 55.01% of 2672
companies
in the Metals & Mining industry
Industry Median: 1.8
vs KALU: 1.43
Kaiser Aluminum Quick Ratio Historical Data
The historical data trend for Kaiser Aluminum'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 Kaiser Aluminum's Quick Ratio
For the Aluminum subindustry, Kaiser Aluminum'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.
Kaiser Aluminum's Quick Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Kaiser Aluminum's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Kaiser Aluminum's Quick Ratio falls into.
Kaiser Aluminum 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.
Kaiser Aluminum'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.
Kaiser Aluminum (NAS:KALU) 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.
Kaiser Aluminum Quick Ratio Related Terms
Thank you for viewing the detailed overview of Kaiser Aluminum's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Kaiser Aluminum (Kaiser Aluminum) Business Description
Kaiser Aluminum Corp produces and sells semi-fabricated specialty aluminum products primarily to industrial customers. The company purchases primary and scrap aluminum, primarily from its five largest suppliers, and processes it into specialized value-added products. It hedges its aluminum costs in an attempt to match commodity price changes between the time it purchases the raw materials and sells the finished products. Kaiser produces high-strength aluminum products for the aerospace industry, specialized aluminum extrusions for the automotive industry, and also sells products to customers in the general engineering industry. Nearly all of Kaiser's revenue is generated in the US, with the remainder coming from Canada. The company's operations are also located in the U.S. and Canada.
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