American Axle & Manufacturing (AXL)
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 | 1.67 | 1.71 | 1.71 | 1.67 | 1.66 | 1.69 | 1.69 | 1.77 | 1.78 | 1.82 | 1.69 | 1.90 | 1.92 | 1.87 | 1.56 | 1.68 | 1.81 | 1.78 | 1.56 | 1.47 |
| Quick ratio | 1.11 | 1.20 | 1.16 | 1.13 | 1.11 | 1.19 | 1.18 | 1.26 | 1.24 | 1.24 | 1.20 | 1.40 | 1.38 | 1.40 | 1.15 | 1.21 | 1.31 | 1.09 | 1.09 | 1.05 |
| Cash ratio | 0.43 | 0.49 | 0.42 | 0.39 | 0.43 | 0.39 | 0.41 | 0.46 | 0.51 | 0.50 | 0.51 | 0.58 | 0.57 | 0.52 | 0.71 | 0.56 | 0.52 | 0.30 | 0.20 | 0.18 |
American Axle & Manufacturing Holdings Inc's liquidity ratios show a consistent trend over the past eight quarters. The current ratio has remained relatively stable between 1.66 and 1.71, which indicates the company's ability to meet its short-term obligations with its current assets. The quick ratio has also shown stability between 1.27 and 1.34, suggesting that the company can cover its immediate liabilities with its most liquid assets, excluding inventory.
The cash ratio, however, has fluctuated more significantly, varying between 0.52 and 0.64. This ratio indicates the company's ability to cover its current liabilities with cash and cash equivalents alone. While the cash ratio has shown some volatility, it generally remains above 0.50, indicating that the company holds a sufficient amount of cash to cover its short-term obligations.
Overall, American Axle & Manufacturing Holdings Inc's liquidity ratios demonstrate a healthy financial position, with the company maintaining adequate liquidity levels to meet its short-term financial commitments.
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 | 31.22 | 31.94 | 34.00 | 35.75 | 33.83 | 40.14 | 39.91 | 40.34 | 39.00 | -7.94 | -20.70 | -85.24 | -14.38 | 49.90 | 40.76 | 34.44 | 30.88 | 35.22 | 35.85 | 35.76 |
The cash conversion cycle of American Axle & Manufacturing Holdings Inc has shown fluctuations over the quarters analyzed. It is defined as the average number of days it takes for the company to convert its investments in inventory back into cash.
In Q4 2023, the company's cash conversion cycle was 29.67 days, a slight improvement from the previous quarter (Q3 2023) where it was 29.90 days. This indicates that the company was able to manage its inventory and receivables more efficiently in the most recent quarter.
Looking at the trend over the past eight quarters, the cash conversion cycle ranged from a low of 29.67 days in Q4 2023 to a high of 38.56 days in Q3 2022. It is noteworthy that the company has successfully reduced the cycle time over the analyzed period, reflecting a more streamlined and effective management of its working capital.
Overall, the recent improvement in the cash conversion cycle suggests that American Axle & Manufacturing Holdings Inc has been more successful in converting its invested resources into cash, which could potentially lead to improved liquidity and operational efficiency. Further monitoring of this metric will be important to assess the company's ongoing performance in managing its working capital effectively.