Alamo Group Inc (ALG)
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 | 3.76 | 3.98 | 4.06 | 4.14 | 3.82 | 3.89 | 3.95 | 3.77 | 3.18 | 3.25 | 3.37 | 3.55 | 3.28 | 3.60 | 4.28 | 3.83 | 3.50 | 4.36 | 4.58 | 4.63 |
| Quick ratio | 1.94 | 2.24 | 2.29 | 2.32 | 1.92 | 1.97 | 2.03 | 1.92 | 1.46 | 1.71 | 1.89 | 2.04 | 1.69 | 2.01 | 2.36 | 2.09 | 1.80 | 2.58 | 2.76 | 2.73 |
| Cash ratio | 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 | 0.26 | 0.50 | 0.41 | 0.34 |
Alamo Group Inc.'s liquidity ratios reflect a consistently healthy financial position over the past eight quarters.
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has remained relatively stable above 3.00, ranging from 3.76 to 4.14. This indicates that Alamo Group has a strong ability to meet its short-term debt obligations.
The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, has exhibited a similar trend, staying above 1.97 in all quarters. This suggests that the company can readily cover its short-term liabilities with its most liquid assets.
The cash ratio, which focuses solely on the ability to cover current liabilities with cash and cash equivalents, has shown a similar stability, albeit at lower levels compared to the current and quick ratios. The cash ratio has ranged from 0.29 to 0.58, indicating that Alamo Group may need to rely on other liquid assets besides cash to meet its short-term obligations.
Overall, Alamo Group Inc. demonstrates strong liquidity positions as indicated by its current, quick, and cash ratios. This suggests that the company has the financial flexibility to meet its short-term obligations and fund its operational needs efficiently.
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 | 146.01 | 148.68 | 151.05 | 153.14 | 144.80 | 147.98 | 147.30 | 147.90 | 131.32 | 127.13 | 128.56 | 130.88 | 124.37 | 124.24 | 137.53 | 142.36 | 147.68 | 136.06 | 147.26 | 152.03 |
The cash conversion cycle for Alamo Group Inc. has exhibited a slight fluctuation over the past eight quarters. The cycle measures the time it takes for the company to convert its resources invested in inventory and accounts receivable into cash inflows from sales.
From Q1 2022 to Q4 2023, the cash conversion cycle ranged from a low of 158.66 days to a high of 167.01 days. This indicates that Alamo Group took between approximately 159 to 167 days to convert its investments in inventory and accounts receivable into cash inflows.
Overall, the trend shows that the company's cash conversion cycle has remained relatively stable, hovering around the mid-160 days range. This suggests that Alamo Group has been managing its working capital effectively, neither significantly extending nor reducing the time it takes to convert its resources into cash.
It would be important for Alamo Group to continue monitoring and potentially optimizing its cash conversion cycle to ensure efficient management of its working capital and liquidity position.