The Andersons Inc (ANDE)

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 1.65 1.98 2.07 2.04 1.72 1.80 1.82 1.44 1.37 1.41 1.39 1.29 1.37 1.45 1.32 1.27 1.25 1.40 1.51 1.31
Quick ratio 0.77 1.03 1.18 0.92 0.87 0.89 0.82 0.57 0.55 0.50 0.48 0.36 0.43 0.56 0.45 0.39 0.36 0.53 0.62 0.41
Cash ratio 0.32 0.39 0.50 0.27 0.40 0.31 0.08 0.04 0.05 0.06 0.03 0.01 0.09 0.13 0.02 0.02 0.02 0.04 0.03 0.01

The Current Ratio for The Andersons Inc has been relatively stable over the past few years, ranging from 1.25 to 2.07. This indicates that the company has a comfortable level of current assets to cover its current liabilities. The ratio peaked at 2.07 on June 30, 2024, suggesting strong liquidity at that point in time.

The Quick Ratio, which excludes inventory from current assets, shows a similar trend, although the values are lower compared to the Current Ratio. The Quick Ratio fluctuated between 0.36 and 1.18 during the period under review. The ratio hit its peak at 1.18 on June 30, 2024, indicating that the company had a high level of highly liquid assets to cover its short-term obligations at that time.

Lastly, the Cash Ratio, which is the most stringent liquidity measure, also shows a generally increasing trend over the years, reaching a peak of 0.50 on June 30, 2024. This ratio demonstrates the company's ability to meet its current liabilities using only its most liquid assets, such as cash and cash equivalents.

Overall, The Andersons Inc appears to have maintained solid liquidity positions over the years, with improving trends in the Quick and Cash Ratios.

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 69.25 54.65 43.40 47.08 49.28 41.56 44.86 58.33 64.55 58.40 68.42 81.01 79.56 58.46 60.13 85.28 91.59 65.08 57.94 74.67

The cash conversion cycle of The Andersons Inc has shown fluctuations over the past few years, which indicates varying efficiency in managing its cash, inventory, and accounts receivable.

From March 31, 2020, to December 31, 2022, the cash conversion cycle ranged from 57.94 days to 91.59 days, with notable peaks and troughs. However, from March 31, 2023, the company has gradually improved its cash conversion cycle, reducing it to 43.40 days by June 30, 2024.

A lower cash conversion cycle suggests that the company is efficiently managing its cash flow, turning resources into cash quicker, which can be advantageous for liquidity and working capital management. The recent downward trend in the cash conversion cycle indicates improved efficiency in converting sales and investments into cash.

Overall, The Andersons Inc should continue to monitor and work on further optimizing its cash conversion cycle to enhance its financial performance and competitiveness in the market.