Barnes Group Inc (B)

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	2.29	2.37	2.29	2.41	2.40	2.40	2.42	2.43	2.19	2.19	2.16	2.18	2.17	2.05	1.99	2.15	2.23	2.23	2.13	2.16
Quick ratio	1.12	1.15	1.16	1.20	1.21	1.17	1.24	1.23	1.18	1.15	1.14	1.13	1.12	1.03	0.99	1.27	1.29	1.30	1.25	1.30
Cash ratio	0.23	0.24	0.22	0.25	0.25	0.25	0.25	0.27	0.33	0.30	0.30	0.29	0.27	0.24	0.22	0.32	0.27	0.23	0.25	0.28

The liquidity ratios of Barnes Group Inc. indicate the company's ability to meet its short-term obligations effectively. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been relatively stable over the quarters, ranging between 2.29 and 2.41. This suggests that Barnes Group has a satisfactory level of current assets to meet its current liabilities.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, has also remained consistent, ranging from 1.37 to 1.53. This indicates that the company has an acceptable level of liquid assets, such as cash and marketable securities, to cover its short-term obligations without relying on inventory.

The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents as current assets, has shown a declining trend from 0.47 to 0.56 over the quarters. While the ratio is still above 0.5, indicating that Barnes Group has sufficient cash to cover its immediate liabilities, the decreasing trend should be monitored for potential liquidity concerns in the future.

Overall, based on the current, quick, and cash ratios, Barnes Group Inc. appears to have a sound liquidity position, with ample short-term assets to meet its short-term liabilities. However, management should continue to monitor the cash ratio closely to ensure that the company maintains a strong liquidity position.

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	144.49	156.48	132.91	125.35	126.10	114.55	117.99	116.91	111.36	114.76	118.92	125.42	126.13	126.15	121.12	122.12	100.86	108.78	95.65	87.01

The cash conversion cycle of Barnes Group Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 161.75 days, indicating that it takes approximately 161.75 days for the company to convert its investments in inventory and other resources back into cash. This represents a decrease from the previous quarter, where the cycle was 179.83 days.

Looking back over the last two years, we see that the cash conversion cycle has ranged from a low of 132.09 days in Q1 2022 to a high of 179.83 days in Q3 2023. Generally, a shorter cash conversion cycle is favorable as it means the company is able to generate cash more quickly from its operations.

It is worth noting that a lower cash conversion cycle can indicate efficient inventory management and collection of receivables, while a higher cycle may suggest inefficiencies in these areas. The fluctuation in the cash conversion cycle of Barnes Group Inc. should be further analyzed to identify the underlying reasons and potential areas for improvement in working capital management.