Arcosa Inc (ACA)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Current ratio 2.12 2.35 2.32 2.40 2.33 2.18 2.09 2.08 2.11 2.08 2.22 2.24 2.14 2.37 2.47 2.77 2.67 3.01 3.07 2.51
Quick ratio 1.07 1.35 1.39 1.43 1.35 1.04 1.03 1.15 1.05 1.11 1.17 1.19 1.15 1.35 1.28 1.57 1.55 1.52 1.54 1.32
Cash ratio 0.24 0.38 0.47 0.39 0.44 0.26 0.18 0.22 0.20 0.17 0.28 0.26 0.31 0.61 0.52 0.72 0.85 0.57 0.41 0.48

Arcosa Inc's liquidity ratios show the company's ability to meet its short-term obligations. The current ratio, which measures the firm's ability to cover its current liabilities with its current assets, has fluctuated in recent quarters but generally remains above 2. This indicates that the company has a healthy level of current assets to meet its short-term liabilities.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows a similar trend as the current ratio, staying above 1 in most periods. This suggests that Arcosa Inc can cover its short-term obligations without relying on selling inventory.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also shown variability but has generally remained relatively stable around 0.4. This indicates that the company has a sufficient amount of cash to cover its immediate liabilities, although there may be room for improvement in building up liquid reserves.

Overall, Arcosa Inc's liquidity ratios demonstrate a generally healthy liquidity position, with the company being able to meet its short-term obligations. However, management should continue to monitor these ratios to ensure the company maintains a strong liquidity position in the face of any unforeseen challenges.

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Cash conversion cycle days 81.79 87.52 86.51 88.23 79.48 73.79 72.80 87.80 86.26 97.05 92.81 83.11 80.24 80.23 91.89 95.36 92.26 114.45 117.39

The cash conversion cycle of Arcosa Inc has shown fluctuations over the past eight quarters. The company's cash conversion cycle indicates how long it takes for Arcosa to convert its investments in inventory and other resources into cash flows from sales.

In the most recent quarter, Q4 2023, the cash conversion cycle was 81.79 days, a slight improvement from the previous quarter. This suggests that Arcosa was able to efficiently manage its working capital and convert inventory and accounts receivable into cash more quickly.

Looking at the trend over the past year, there was a noticeable decrease in the cash conversion cycle from Q1 2022 to Q3 2022, indicating that Arcosa was managing its working capital effectively during that period. However, there was a spike in the cycle in Q4 2022 and a subsequent improvement in Q1 2023 shows some fluctuations in the company's cash conversion efficiency.

Overall, Arcosa Inc's cash conversion cycle has demonstrated some variability, with periods of improvement and slight deterioration. It is essential for the company to focus on effectively managing its working capital to ensure a streamlined cash conversion process and optimize its financial performance in the long term.