Avient Corp (AVNT)

Based on the provided data, Avient Corp's liquidity ratios show a relatively stable current ratio over the years, ranging from 1.81 to 1.97. This indicates that the company has had enough current assets to cover its current liabilities, with a slight decrease in recent years.

In contrast, the quick ratio, also known as the acid-test ratio, has shown a declining trend from 0.64 to 0.72 over the same period. This suggests that Avient Corp's ability to meet its short-term obligations using its most liquid assets has weakened slightly.

Furthermore, the cash ratio, which measures the firm's ability to cover its current liabilities with its cash and cash equivalents, remained consistent at 0.64 to 0.81. This indicates that Avient Corp has a stable amount of cash on hand relative to its short-term liabilities.

Overall, while Avient Corp's current ratio indicates a reasonable level of liquidity, the declining trend in the quick ratio warrants attention as it suggests a potential decrease in the company's ability to meet immediate obligations with its most liquid assets.

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Additional liquidity measure

The cash conversion cycle of Avient Corp has shown varying trends over the past five years. In 2020, the company had a cash conversion cycle of 48.64 days, which decreased to 45.25 days by the end of 2021. However, there was an increase in the cash conversion cycle in 2022, reaching 54.11 days, and further increasing to 56.54 days by the end of 2023. In the most recent year, the cash conversion cycle reached 57.97 days.

Overall, the increasing trend in the cash conversion cycle indicates that Avient Corp takes longer to convert its investments in inventory and accounts receivable into cash. This may imply potential inefficiencies in managing working capital and could impact the company's liquidity and cash flow position. Avient Corp may need to evaluate its inventory management and accounts receivable collection strategies to optimize its cash conversion cycle and improve cash flow performance.