Aptiv PLC (APTV)

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 1.72 1.81 1.76 1.71 1.60 2.66 2.63 2.60 2.01 2.11 2.06 1.97 1.85 1.84 1.89 1.69 1.31 1.39 1.22 1.20
Quick ratio 1.14 1.20 1.14 1.09 1.07 2.07 1.98 1.98 1.48 1.51 2.00 1.48 1.44 1.41 1.39 1.26 0.80 0.85 0.84 0.83
Cash ratio 0.34 0.37 0.27 0.24 0.32 1.19 1.16 1.18 0.76 0.74 1.25 0.71 0.70 0.59 0.66 0.56 0.10 0.09 0.09 0.08

Aptiv PLC's liquidity ratios provide insights into the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to pay its current liabilities with its current assets, has been relatively stable over the quarters, ranging from 1.60 to 1.81. A current ratio above 1 indicates that the company has more current assets than current liabilities, with a higher ratio suggesting a stronger ability to cover short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown consistency, ranging from 1.12 to 1.29. This ratio provides a more conservative view of the company's ability to cover short-term obligations without relying on selling inventory. A quick ratio above 1 is generally considered favorable, indicating that the company can meet its short-term liabilities without relying on inventory sales.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has shown some volatility, ranging from 0.32 to 0.47. A cash ratio below 1 suggests that the company may need to rely on sources other than cash to meet its short-term obligations. The trend in Aptiv PLC's cash ratio indicates that the company may have variable cash reserves to cover its immediate liabilities.

Overall, Aptiv PLC's liquidity ratios indicate a generally healthy liquidity position, with the current and quick ratios consistently above 1. However, the variability in the cash ratio suggests that the company may need to manage its cash position more effectively to ensure continued liquidity in the short term.

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 53.89 58.86 62.03 65.33 58.04 66.84 66.06 62.03 47.35 57.97 47.72 47.22 42.46 52.66 54.17 38.89 35.24 46.90 45.47 44.77

The cash conversion cycle of Aptiv PLC has shown some fluctuations over the past eight quarters, ranging from a low of 52.18 days in Q4 2023 to a high of 65.75 days in Q3 2022. Generally, a lower cash conversion cycle is preferred as it indicates that the company is efficient in converting its investments in inventory and accounts receivable into cash.

The trend indicates that Aptiv PLC has been able to manage its cash conversion cycle more effectively in recent quarters, with improvements seen in Q4 2023 compared to the prior quarters. However, there was a slight increase in Q3 2023 compared to Q4 2023.

It is important for the company to continue monitoring and managing its cash conversion cycle to ensure optimal efficiency in its operations. By reducing the time it takes to convert investments into cash, Aptiv PLC can better manage its working capital and overall financial performance.