Ball Corporation (BALL)

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 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 0.88 1.01 1.10 1.09
Quick ratio 0.49 0.51 0.47 0.43 0.45 0.54 0.56 0.55 0.52 0.64 0.54 0.52 0.70 0.68 0.59 0.67 0.61 0.65 0.66 0.62
Cash ratio 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 0.32 0.13 0.18 0.15

The liquidity ratios of Ball Corp. over the past eight quarters show fluctuations in the company's ability to cover its short-term liabilities with its current assets.

The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has shown a declining trend from Q1 2022 to Q4 2023, indicating a potential strain on the company's liquidity position. The ratio has fluctuated between 0.76 and 0.94 over the period, with a significant drop in Q4 2023 to 0.79. This suggests that Ball Corp. may be facing challenges in meeting its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a declining trend over the period, dropping from 0.61 in Q1 2022 to 0.46 in Q4 2023. This indicates a diminishing ability to cover immediate obligations without relying on inventory assets.

The cash ratio, which is the most conservative liquidity measure focusing solely on cash and cash equivalents, has been relatively volatile over the period. Although there was an improvement in Q3 2023 with a cash ratio of 0.25, the ratio dropped back to 0.16 in Q4 2023, indicating a limited cash reserve available to meet obligations.

Overall, Ball Corp.'s liquidity position, as reflected in its current, quick, and cash ratios, has shown signs of weakening over the past quarters. Management should closely monitor these ratios and take proactive measures to improve liquidity to ensure the company can meet its short-term obligations efficiently.

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 -3.48 7.16 17.52 24.48 5.40 8.06 9.08 1.11 -22.64 -12.38 -5.65 -3.83 -20.29 2.84 11.41 14.91 -32.49 -28.92 -95.50 -390.08

The cash conversion cycle measures the number of days it takes for a company to convert its investments in inventory back into cash. A shorter cash conversion cycle is generally seen as more favorable, as it indicates the company is able to efficiently manage its working capital.

Based on the data provided for Ball Corp., we can see fluctuations in the cash conversion cycle over the past eight quarters. In Q4 2023 and Q1 2023, Ball Corp. experienced negative cash conversion cycles, indicating that the company was able to convert its investments into cash quickly. This can be a positive sign of strong inventory management and efficient cash flow.

However, in Q2 2023 and Q3 2023, the cash conversion cycle increased significantly to 13.56 days and 2.86 days respectively, suggesting a slower conversion of inventory to cash. This may indicate potential challenges in managing inventory levels or delays in collecting accounts receivable during those periods.

Overall, Ball Corp. should pay attention to the fluctuations in its cash conversion cycle to ensure efficient working capital management. Analyzing the underlying factors contributing to these variations can help the company identify areas for improvement and maintain consistent cash flow performance.