Alamo Group Inc (ALG)
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 | 4.51 | 4.15 | 4.37 | 4.29 | 3.76 | 3.98 | 4.06 | 4.14 | 3.82 | 3.89 | 3.95 | 3.77 | 3.18 | 3.25 | 3.37 | 3.55 | 3.20 | 3.60 | 4.28 | 3.83 |
| Quick ratio | 1.04 | 0.66 | 0.57 | 0.57 | 0.24 | 0.52 | 0.52 | 0.54 | 0.25 | 0.39 | 0.40 | 0.42 | 0.22 | 0.46 | 0.46 | 0.61 | 0.32 | 0.59 | 0.61 | 0.52 |
| Cash ratio | 1.04 | 0.66 | 0.57 | 0.57 | 0.24 | 0.52 | 0.52 | 0.54 | 0.25 | 0.39 | 0.40 | 0.42 | 0.22 | 0.46 | 0.46 | 0.61 | 0.32 | 0.59 | 0.61 | 0.52 |
Alamo Group Inc's current ratio has exhibited a stable range over the analyzed period, fluctuating between 3.18 and 4.51. This indicates the company's ability to cover its short-term obligations with its current assets, suggesting a strong liquidity position.
The quick ratio has shown more variability compared to the current ratio, ranging from 0.22 to 1.04. Although there have been fluctuations, the quick ratio generally indicates that Alamo Group Inc may sometimes face challenges meeting its short-term liabilities with its most liquid assets.
The cash ratio has displayed a similar pattern to the quick ratio, varying from 0.22 to 1.04. This ratio reflects the company's ability to pay off its current liabilities with its cash and cash equivalents, signaling fluctuations in Alamo Group Inc's cash position over the analyzed period.
Overall, the liquidity ratios of Alamo Group Inc suggest that the company has maintained a relatively stable liquidity position, with the current ratio consistently above 1 and within a healthy range, while the quick and cash ratios have shown more variability, potentially indicating fluctuations in the company's ability to meet short-term obligations using its most liquid assets.
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 | 102.38 | 109.21 | 112.61 | 111.48 | 111.11 | 111.57 | 113.55 | 113.99 | 113.17 | 120.16 | 119.56 | 124.69 | 117.17 | 110.95 | 103.91 | 104.92 | 96.33 | 100.83 | 104.16 | 113.14 |
The cash conversion cycle of Alamo Group Inc has shown some fluctuations over the observed periods. Starting at 113.14 days on March 31, 2020, the cycle improved to 96.33 days by the end of December 31, 2020. Subsequently, the cycle increased gradually, reaching a peak of 124.69 days on March 31, 2022. However, it then decreased to 102.38 days by the end of December 31, 2024.
Overall, the cash conversion cycle of Alamo Group Inc indicates the time taken to convert its investment in inventory and other inputs into cash flows from sales. A shorter cycle indicates that the company is efficiently managing its working capital and liquidity, while a longer cycle could suggest potential inefficiencies in inventory management or collections. Monitoring the trend of the cash conversion cycle can provide insights into the company's operational efficiency and financial health.