Astec Industries Inc (ASTE)

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 2.66 2.47 2.49 2.50 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
Quick ratio 0.34 0.20 0.22 0.21 0.22 0.28 0.18 0.17 0.24 0.09 0.21 0.46 0.63 0.82 0.88 0.93 0.96 0.70 0.85 0.27
Cash ratio 0.34 0.20 0.22 0.21 0.22 0.28 0.18 0.17 0.24 0.09 0.21 0.46 0.63 0.82 0.88 0.93 0.96 0.70 0.85 0.27

The liquidity ratios of Astec Industries Inc show a relatively stable current ratio over the periods, ranging from a high of 3.68 in June 2020 to a low of 2.29 in September 2022. This indicates the company's ability to cover its short-term obligations with its current assets, though there has been a slight decline in recent quarters.

In contrast, the quick ratio highlights a more volatile trend, with the ratio fluctuating significantly over the years. The quick ratio measures the company's ability to meet short-term obligations with its most liquid assets, excluding inventory. Astec Industries Inc experienced a significant drop in the quick ratio from 0.96 in December 2020 to 0.09 in September 2022, indicating potential liquidity challenges during that period.

The cash ratio, which is the most stringent measure of liquidity, remained relatively low throughout the period, hovering around 0.20 to 0.40. This suggests that the company has a limited amount of cash and cash equivalents compared to its current liabilities.

Overall, while the current ratio of Astec Industries Inc indicates a reasonable ability to meet short-term obligations, the significant fluctuations in the quick ratio and low cash ratio may raise concerns about the company's liquidity position in certain periods. Monitoring these ratios closely will be important for assessing the company's ability to meet its short-term financial obligations effectively.

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 157.93 175.70 169.96 180.10 165.07 158.39 148.81 146.87 142.11 152.88 150.28 150.71 130.80 126.87 118.99 113.60 116.32 112.25 110.01 121.05

The cash conversion cycle for Astec Industries Inc has shown some fluctuations over the periods provided in the data.

From March 31, 2020, to September 30, 2021, the cash conversion cycle ranged between 110.01 days to 126.87 days, indicating that the company's ability to convert its resources into cash within this cycle remained relatively stable.

However, from March 31, 2022, to December 31, 2024, the cash conversion cycle increased significantly, reaching its peak at 180.10 days on March 31, 2024. This upward trend suggests that Astec Industries Inc may be facing challenges in efficiently managing its working capital and converting its investments and expenses into cash.

Overall, the increasing trend in the cash conversion cycle may imply that the company is taking longer to collect receivables, convert inventory into sales, and pay its suppliers. Astec Industries Inc may need to streamline its operations and implement strategies to improve its cash conversion cycle to enhance its liquidity and financial performance in the future.