Adient PLC (ADNT)
Liquidity ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.11 | 1.08 | 1.13 | 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 |
| Quick ratio | 0.26 | 0.24 | 0.25 | 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 | 0.26 |
| Cash ratio | 0.26 | 0.24 | 0.25 | 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 | 0.26 |
The current ratio for Adient PLC has ranged from 1.01 to 1.45 over the past eight quarters, indicating that the company's current assets have generally been sufficient to cover its current liabilities. However, the ratio has displayed some fluctuations, possibly indicating changes in the company's ability to meet short-term obligations.
The quick ratio, which excludes inventory from current assets, has varied between 0.23 and 0.74 during the same period. This suggests that Adient may have faced challenges in meeting its short-term obligations without relying on inventory in some quarters.
The cash ratio, representing the most conservative measure of liquidity, has also shown some variability, ranging from 0.24 to 0.74. This indicates that Adient's cash and cash equivalents may not always be sufficient to cover its current liabilities without relying on other current assets.
Overall, while Adient PLC generally maintains a current ratio above 1, indicating a basic level of liquidity, the variations in the quick and cash ratios suggest potential fluctuations in the company's ability to quickly cover its short-term financial obligations. Further analysis would be necessary to understand the underlying reasons for these fluctuations and their potential impacts on the company's liquidity position.
Additional liquidity measure
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -47.59 | -44.23 | -44.34 | -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 |
The cash conversion cycle of Adient PLC has been fluctuating over the historical periods. The company has shown a negative cash conversion cycle in most of the periods, indicating efficient management of its working capital.
In the most recent period, as of September 30, 2024, the cash conversion cycle was calculated at -47.59 days. This means that on average, Adient takes less than two months to convert its inventory into cash received from customers. A negative cash conversion cycle indicates that the company is able to collect payment from customers before it pays its suppliers, leading to a favorable working capital position.
The trend of the cash conversion cycle over the past several periods shows some variability, but generally, the company has been able to efficiently manage its working capital. It is important to monitor this metric over time to ensure that the company maintains effective control over its cash flows and working capital management.