ArcBest Corp (ARCB)
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 | 1.01 | 1.04 | 1.19 | 1.23 | 1.26 | 1.33 | 1.35 | 1.33 | 1.29 | 1.32 | 1.25 | 1.16 | 1.10 | 1.55 | 1.51 | 1.54 | 1.50 | 1.47 | 2.05 | 2.06 |
| Quick ratio | 0.88 | 0.94 | 1.09 | 1.11 | 1.16 | 1.23 | 1.22 | 1.23 | 1.19 | 1.24 | 1.18 | 1.08 | 1.03 | 1.47 | 1.42 | 1.44 | 1.39 | 1.39 | 1.97 | 1.95 |
| Cash ratio | 0.24 | 0.29 | 0.40 | 0.39 | 0.47 | 0.51 | 0.53 | 0.53 | 0.42 | 0.40 | 0.27 | 0.14 | 0.18 | 0.76 | 0.75 | 0.72 | 0.73 | 0.71 | 1.31 | 1.26 |
ArcBest Corp's liquidity ratios have shown fluctuations over the past few years. Starting with the current ratio, it decreased from 2.06 in March 2020 to 1.01 in December 2024. This indicates a decline in the company's ability to cover its short-term liabilities with its current assets.
Similarly, the quick ratio also followed a downward trend, dropping from 1.95 in March 2020 to 0.88 in December 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. The decreasing trend suggests a potential liquidity challenge for ArcBest Corp.
Lastly, the cash ratio, which specifically focuses on the ability to cover current liabilities with cash and cash equivalents, also saw a decline from 1.26 in March 2020 to 0.24 in December 2024. This indicates a decreasing amount of cash available to cover immediate financial obligations.
Overall, the decreasing trend in all three liquidity ratios signals a potential liquidity risk for ArcBest Corp. It is essential for the company to closely monitor its liquidity position and take necessary steps to improve its short-term financial stability.
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 | 2.55 | 0.04 | -7.26 | -4.78 | -3.79 | -5.59 | -10.68 | -9.56 | -6.96 | -18.50 | -25.14 | -10.59 | -18.76 | -3.78 | -1.54 | 6.23 | 6.13 | -3.04 | -1.83 | 4.81 |
The cash conversion cycle of ArcBest Corp has shown fluctuations over the past few years. Initially, the company had a positive cash conversion cycle, indicating that it took a few days for the company to convert its investments in inventory and other resources back into cash.
However, in recent periods, ArcBest Corp has managed to significantly improve its cash conversion cycle, as reflected by negative values. This suggests that the company is now able to convert its investments into cash at a faster rate, which is a positive sign for its liquidity management.
The trend of decreasing cash conversion cycle values indicates that ArcBest Corp has been managing its working capital more efficiently, likely by optimizing inventory levels, collecting receivables more promptly, and extending payables judiciously. This improved efficiency in converting resources into cash can help the company maintain a healthy cash flow position and better meet its financial obligations.
Overall, the negative values in the cash conversion cycle demonstrate ArcBest Corp's effectiveness in managing its working capital and liquidity, which can contribute to the company's financial stability and growth prospects.