The Andersons Inc (ANDE)

Based on the provided data, let's analyze The Andersons Inc's liquidity ratios:

1. Current Ratio:
- The current ratio measures the company's ability to meet its short-term obligations with its current assets.
- The trend shows an improvement from 1.25 in 2020 to 1.65 in 2024, indicating an increasing ability to cover short-term liabilities with current assets.
- A current ratio above 1 indicates that the company can cover its short-term obligations, and a ratio of 1.65 in 2024 suggests a healthy liquidity position.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventories from current assets.
- The trend shows improvement from 0.36 in 2020 to 0.77 in 2024, indicating an increasing ability to meet short-term obligations without relying on inventory.
- Although the quick ratio is lower than the current ratio, the upward trend is positive and shows an improving ability to cover short-term liabilities with more liquid assets.

3. Cash Ratio:
- The cash ratio is the most conservative liquidity measure, focusing solely on cash and cash equivalents to cover short-term obligations.
- The data reflects an increase from 0.02 in 2020 to 0.32 in 2024, showing a significant improvement in the company's ability to meet short-term obligations with cash on hand.
- A cash ratio of 0.32 in 2024 indicates that the company holds more cash relative to its short-term liabilities, which is a positive sign for liquidity.

In conclusion, based on the analysis of The Andersons Inc's liquidity ratios, the company has shown improvement in its ability to meet short-term obligations over the years. The current ratio, quick ratio, and cash ratio have all increased, indicating a strengthening liquidity position and a better ability to manage short-term financial needs.

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Additional liquidity measure

The cash conversion cycle of The Andersons Inc has shown a decreasing trend over the years, indicating an improvement in its efficiency in managing its cash flows. In 2020, the cash conversion cycle was 91.43 days, which decreased to 79.56 days by the end of 2021. The trend continued with further reductions to 64.55 days in 2022 and 49.28 days in 2023, demonstrating a significant improvement in the company's ability to convert its investments in inventory and receivables into cash.

However, there was a slight increase in the cash conversion cycle to 69.25 days by the end of 2024. Despite this small uptick, the overall trend highlights the company's efforts to streamline its operations and manage its working capital more effectively. A lower cash conversion cycle indicates that The Andersons Inc is managing its cash, inventory, and receivables efficiently, which can lead to improved liquidity and profitability in the long run.