Arcosa Inc (ACA)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.85 3.61 2.31 2.28 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
Quick ratio 0.36 1.75 0.24 0.41 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
Cash ratio 0.36 1.75 0.24 0.41 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

Arcosa Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been relatively stable, ranging from 2.08 to 3.61 over the past few years, showing the company's strong ability to cover its current liabilities with current assets.

The quick ratio, which excludes inventory from current assets, has shown some fluctuation but generally remained above 1.0, indicating that Arcosa Inc can meet its short-term obligations without relying on selling inventory. Although the quick ratio dipped below 1.0 in some periods, the company managed to improve it over time.

The cash ratio, which focuses solely on cash and cash equivalents to cover current liabilities, has also exhibited a similar trend to the quick ratio. It highlights the company's cash position, staying above 0.20 in most periods, which signifies a healthy level of cash reserves to meet immediate obligations.

Overall, Arcosa Inc's liquidity ratios reflect a strong financial position with the ability to settle short-term liabilities efficiently. However, the company should continue to monitor and manage its liquidity position to ensure ongoing stability.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 63.93 66.02 75.07 77.18 78.67 73.08 71.65 65.76 63.33 65.31 59.69 71.60 70.92 77.97 80.16 69.32 65.03 68.37 75.70 75.69

The cash conversion cycle (CCC) of Arcosa Inc reflects the average number of days it takes for the company to convert its investments in inventory and other resources into cash from sales. Looking at the historical data provided, we can observe fluctuations in Arcosa's CCC over the years, indicating changes in its efficiency in managing working capital.

The CCC ranged from a high of 80.16 days in June 2021 to a low of 59.69 days in June 2022. Generally, a shorter cash conversion cycle is favorable as it suggests that the company is able to quickly convert its resources into cash, improving liquidity and potentially reducing the need for external financing.

Arcosa's CCC peaked at 80.16 days in June 2021, signaling potential challenges in managing inventory, accounts receivable, and accounts payable efficiently. However, the company managed to improve its CCC by the end of 2022, with a reduction to 63.93 days in December 2024, indicating potential enhancements in working capital management.

It is essential for Arcosa to continue monitoring and improving its cash conversion cycle to ensure optimal utilization of resources and maintain healthy cash flows for sustainable operations and growth. Any significant deviations from the historical trends should be investigated and addressed promptly to maximize operational efficiency and financial performance.