Adient PLC (ADNT)
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 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.15 | 1.15 | 1.18 | 1.16 | 1.20 | 1.19 | 1.20 | 1.18 | 1.36 | 1.45 | 1.13 | 1.12 | 1.25 | 1.17 | 1.12 | 1.01 | 1.03 | 1.07 | 1.07 | 0.98 |
| Quick ratio | 0.28 | 0.30 | 0.24 | 0.23 | 0.27 | 0.27 | 0.26 | 0.31 | 0.56 | 0.53 | 0.28 | 0.27 | 0.74 | 0.44 | 0.69 | 0.69 | 0.62 | 0.61 | 0.61 | 0.51 |
| Cash ratio | 0.28 | 0.30 | 0.24 | 0.23 | 0.27 | 0.27 | 0.26 | 0.31 | 0.56 | 0.53 | 0.28 | 0.27 | 0.74 | 0.44 | 0.69 | 0.69 | 0.62 | 0.61 | 0.61 | 0.51 |
Adient plc's liquidity ratios show some fluctuations over the past eight quarters. The current ratio has been relatively stable, ranging between 1.15 to 1.20, indicating that the company has sufficient current assets to cover its current liabilities. However, the quick ratio, which excludes inventory from current assets, shows a slight decline from 0.93 to 0.91, suggesting a slightly weaker ability to meet short-term obligations without relying on inventory.
Moreover, the cash ratio, which specifically measures the company's ability to cover current liabilities with cash and cash equivalents, has shown some variability, ranging from 0.36 to 0.45. While the cash ratio has been below 1 in most quarters, indicating limited liquid cash available to cover short-term liabilities, it has shown some improvement in the most recent quarter.
Overall, Adient plc's liquidity position appears relatively stable based on the current and quick ratios, although the company may need to carefully manage its cash resources to ensure it can meet short-term obligations, as indicated by the lower cash ratio values.
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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -40.54 | -42.82 | -45.31 | -46.47 | -39.28 | -41.81 | -40.53 | -43.06 | -38.71 | -32.77 | -33.70 | -48.69 | -46.48 | -45.15 | -21.37 | -35.55 | -41.16 | -44.47 | -44.93 | -46.16 |
The cash conversion cycle of Adient plc has been fluctuating over the past eight quarters. In Q1 2024, the company's cash conversion cycle was -1.06 days, indicating that Adient was able to convert its investments in inventory and accounts receivable into cash quickly. This represents an improvement from the previous quarter (Q4 2023) when the cash conversion cycle was 1.61 days.
Looking back further, in Q3 2023, the cash conversion cycle was 4.11 days, showing a longer period for Adient to convert its investments into cash compared to the more recent quarters. The trend continued in Q2 and Q1 2023, where the cash conversion cycles were 3.80 days and 5.39 days, respectively.
Going back to Q4 2022, Adient's cash conversion cycle was 6.06 days, which was further extended compared to Q3 2022 at 8.01 days, indicating a significant delay in converting investments into cash during that period. However, in Q2 2022, the cash conversion cycle improved to 5.86 days.
Overall, the fluctuation in the cash conversion cycle of Adient plc in recent quarters suggests a need for careful management of working capital to ensure a more efficient conversion of investments into cash.