Arcosa Inc (ACA)

Liquidity ratios

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current ratio 1.85 2.12 2.33 2.11 2.14
Quick ratio 0.36 0.24 0.44 0.20 0.31
Cash ratio 0.36 0.24 0.44 0.20 0.31

Arcosa Inc's current ratio, a measure of short-term liquidity, has shown a generally stable trend over the years, ranging from 2.11 to 2.33. This indicates that the company has maintained a comfortable level of current assets to cover its current liabilities.

In contrast, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has fluctuated between 0.20 and 0.44. While the quick ratio has shown more variability compared to the current ratio, it still suggests that Arcosa Inc may sometimes face challenges in meeting its short-term obligations without relying on inventory.

The cash ratio, which specifically looks at the company's ability to cover current liabilities with its cash and cash equivalents, has mirrored the trend of the quick ratio, ranging from 0.20 to 0.44. This implies that Arcosa Inc may have limited liquidity in terms of readily available cash to meet its immediate financial obligations.

Overall, while the current ratio indicates a healthy liquidity position for Arcosa Inc, the fluctuating quick and cash ratios suggest that the company should continue to monitor its ability to meet short-term financial obligations without depending heavily on inventory or cash reserves.


Additional liquidity measure

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash conversion cycle days 63.93 78.67 63.33 70.92 65.03

The cash conversion cycle of Arcosa Inc has shown fluctuations over the past five years. The cycle increased from 65.03 days as of December 31, 2020, to 70.92 days as of December 31, 2021, indicating a lengthening period required to convert inventory into cash. However, the company managed to decrease the cycle to 63.33 days by December 31, 2022, showing improved efficiency in managing its working capital.

Nonetheless, there was a significant increase in the cash conversion cycle to 78.67 days by December 31, 2023, suggesting potential challenges in cash flow management during that period. Arcosa Inc then reduced the cycle to 63.93 days by December 31, 2024, reflecting a successful effort in optimizing its working capital processes.

Overall, while Arcosa Inc experienced fluctuations in its cash conversion cycle over the years, the company demonstrated the ability to adapt and improve efficiency in managing its cash flow and working capital needs.