Astec Industries Inc (ASTE)

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 2.41 2.64 2.56 2.50 2.54 2.29 2.42 2.63 2.85 3.04 3.05 3.20 3.32 3.31 3.68 3.16 2.93 3.06 3.21 3.02
Quick ratio 0.74 0.90 0.78 0.80 0.89 0.65 0.79 1.00 1.27 1.51 1.60 1.69 1.74 1.48 1.65 1.08 1.09 0.80 0.93 0.86
Cash ratio 0.23 0.28 0.18 0.17 0.26 0.09 0.21 0.46 0.64 0.82 0.88 0.93 1.06 0.70 0.85 0.27 0.39 0.16 0.15 0.16

Based on the provided data on Astec Industries Inc.'s liquidity ratios, we can observe the following trends:

1. Current Ratio:
- The current ratio demonstrates Astec Industries Inc.'s ability to meet its short-term obligations with its current assets.
- The company maintained a relatively stable current ratio over the quarters, ranging from a low of 2.41 in Q4 2023 to a high of 2.64 in Q3 2023.
- On average, Astec Industries Inc. has maintained a healthy current ratio above 2, indicating a strong ability to cover its short-term liabilities with its current assets.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets.
- Astec Industries Inc.'s quick ratio fluctuated over the quarters, with a low of 0.82 in Q3 2022 and a high of 1.18 in Q1 2022.
- The company's quick ratio was below 1 in most quarters, suggesting that it may have difficulty meeting its short-term obligations without relying on selling inventory.

3. Cash Ratio:
- The cash ratio measures the firm's ability to cover its short-term obligations with its most liquid asset, cash.
- Astec Industries Inc.'s cash ratio varied widely, ranging from 0.23 in Q3 2022 to 0.62 in Q1 2022.
- The cash ratio below 1 in most quarters indicates that the company relies more on other current assets besides cash to meet its short-term obligations.

In conclusion, Astec Industries Inc. generally shows strength in liquidity, as evidenced by its current ratio consistently above 2. However, the lower quick and cash ratios suggest that the company may need to rely on liquidating some of its current assets, including inventory, to meet its short-term obligations.

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 137.29 140.44 131.28 134.05 133.80 138.16 136.30 130.52 120.47 124.05 118.68 116.08 114.19 114.51 110.34 123.75 121.28 132.43 142.99 138.61

The cash conversion cycle of Astec Industries Inc., a measure of how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown some fluctuations over the past eight quarters.

In Q4 2023, the cash conversion cycle was 164.37 days, slightly lower than the previous quarter's 166.29 days. This indicates that the company is managing its working capital more efficiently in terms of converting inventory and accounts receivable into cash compared to the previous quarter.

Looking at the trend over the past year, the cash conversion cycle ranged from a low of 153.10 days in Q4 2022 to a high of 166.29 days in Q3 2023. This indicates some variability in how long it takes for Astec Industries Inc. to convert its resources into cash during different periods.

Overall, although there have been fluctuations in the cash conversion cycle, it is important for the company to focus on optimizing this metric to ensure efficient use of working capital and healthy cash flows in the long term.