Ball Corporation (BALL)

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 1.00 1.09 1.18 1.21 0.79 0.81 0.78 0.76 0.78 0.94 1.00 0.97 0.88 0.97 0.85 0.85 1.05 1.07 0.97 1.06
Quick ratio 0.18 0.28 0.28 0.32 0.11 0.20 0.14 0.08 0.08 0.08 0.07 0.07 0.09 0.24 0.10 0.09 0.31 0.20 0.16 0.20
Cash ratio 0.18 0.28 0.28 0.32 0.11 0.20 0.14 0.08 0.08 0.08 0.07 0.07 0.09 0.24 0.10 0.09 0.31 0.20 0.16 0.20

Based on the data provided, we can analyze the liquidity ratios of Ball Corporation:

1. Current Ratio: The current ratio measures the company's ability to meet its short-term obligations with its current assets. Ball Corporation's current ratio fluctuated over the years, ranging from a low of 0.76 on March 31, 2023, to a high of 1.21 on March 31, 2024. The ratio improved in the last quarter of 2024, indicating the company had more current assets to cover its current liabilities.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Ball Corporation's quick ratio was generally lower than the current ratio, indicating the company might have difficulty meeting its short-term obligations without relying on inventory. The quick ratio peaked at 0.32 on March 31, 2024, suggesting an improvement in the company's ability to cover its current liabilities with its most liquid assets.

3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, focusing solely on the company's ability to cover its current liabilities with cash and cash equivalents. Ball Corporation's cash ratio mirrored the trend of the quick ratio, indicating the company's cash position relative to its current liabilities. The ratio improved in the first quarter of 2024, reaching 0.32, which suggests a stronger ability to meet short-term obligations with cash reserves.

Overall, Ball Corporation's liquidity ratios fluctuated over the years, with improvements seen in the most recent periods. The company should continue to monitor its liquidity positions to ensure it can meet its obligations and fund its operations effectively in the future.

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 55.88 50.24 49.42 49.96 51.99 54.66 62.08 65.65 62.30 63.17 73.43 73.04 59.10 56.66 53.68 53.19 52.97 52.89 56.50 53.92

The cash conversion cycle of Ball Corporation has shown fluctuations over the periods provided. The trend reveals that the company's cash conversion cycle increased from 53.92 days on March 31, 2020, to a peak of 73.43 days on June 30, 2022. However, there was a significant improvement to 49.42 days on June 30, 2024.

A lower cash conversion cycle indicates that the company is efficient in managing its working capital by collecting receivables quickly, converting inventory into sales, and paying suppliers promptly. Conversely, a higher cash conversion cycle may suggest inefficiencies in these processes and a longer cash cycle.

Overall, the fluctuations in Ball Corporation's cash conversion cycle should be further analyzed to understand the underlying factors contributing to the changes and to assess the company's working capital management practices.