ArcBest Corp (ARCB)

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 1.26 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 1.50 1.41 1.38 1.40
Quick ratio 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 1.40 1.33 1.30 1.31
Cash ratio 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 0.72 0.66 0.64 0.59

ArcBest Corp's liquidity ratios show consistent performance over the past eight quarters. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has remained above 1.25 in all quarters, indicating a satisfactory level of liquidity. The quick ratio, a more stringent measure of liquidity excluding inventory, also demonstrates a stable trend above 1.25 in the same periods. This suggests that the company has a healthy ability to meet its short-term obligations without relying on selling its inventory.

Additionally, ArcBest Corp's cash ratio, which evaluates the company's ability to cover its current liabilities with cash and cash equivalents, has shown an improving trend over the quarters. The increasing cash ratio indicates a strengthening liquidity position, with the company holding more cash relative to its current liabilities. This improved cash position may enhance ArcBest Corp's ability to handle any unexpected financial obligations or invest in future growth opportunities.

Overall, the liquidity ratios of ArcBest Corp reflect a consistent and improving financial position in terms of its ability to meet short-term obligations and manage cash effectively.

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 -3.79 -5.59 -10.68 -9.56 -6.96 -18.50 -18.11 -10.59 -18.76 -3.78 -1.54 6.23 6.13 -3.04 -1.83 4.81 2.22 3.66 2.55 7.95

The cash conversion cycle of ArcBest Corp has experienced fluctuations over the past eight quarters.

In Q1 2022, the company's cash conversion cycle was at its peak at 56.82 days, indicating that it took the company almost two months to convert its investments in inventory and accounts receivable into cash. Since then, there has been a decreasing trend in the cash conversion cycle, reaching a low of 33.47 days in Q2 2023.

A shorter cash conversion cycle generally indicates that the company is managing its working capital more efficiently, as it is taking less time to convert its assets into cash. This could be a positive sign as it shows that the company is able to generate cash quickly from its operational activities.

However, it is important to note that a very low cash conversion cycle could also indicate aggressive cash management practices, such as stretching payables or reducing inventory levels to unsustainable levels. On the other hand, a longer cash conversion cycle could indicate inefficiencies in managing working capital, leading to potential liquidity issues.

Overall, the trend of decreasing cash conversion cycle for ArcBest Corp over the quarters suggests improving efficiency in working capital management, but further analysis of the company's operational and financial strategies is needed to assess the implications of these changes in the cash conversion cycle.