Brunswick Corporation (BC)

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 1.43 1.47 1.92 1.86 1.81 1.88 1.99 2.10 1.47 2.34 1.59 1.63 1.55 1.77 1.63 1.45 1.62 1.87 1.98 1.61
Quick ratio 0.56 0.54 0.78 0.76 0.78 0.76 0.90 1.02 0.59 1.54 0.87 0.90 0.86 1.11 0.94 0.76 0.70 0.88 1.14 0.56
Cash ratio 0.27 0.20 0.34 0.27 0.41 0.36 0.45 0.52 0.25 1.18 0.47 0.42 0.54 0.69 0.51 0.40 0.35 0.42 0.66 0.14

Based on the provided data for Brunswick Corp.'s liquidity ratios, we can observe the following trends:

1. Current Ratio:
- The current ratio has generally been above 1, indicating that Brunswick Corp. has had sufficient current assets to cover its current liabilities.
- The ratio fluctuated over the quarters but remained relatively stable, with Q2 2023 reporting the highest ratio of 1.92 and Q1 2022 the lowest at 1.81.
- Brunswick Corp. has shown consistent ability to meet its short-term obligations using its current assets.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, takes into account only the most liquid assets to cover current liabilities.
- Brunswick Corp.'s quick ratio has been consistently below 1, suggesting a reliance on inventory or other less liquid current assets to meet short-term obligations.
- The company's quick ratio fluctuated over time, with Q2 2022 recording the lowest ratio of 0.84 and Q1 2022 the highest at 1.08.

3. Cash Ratio:
- The cash ratio measures a company's ability to cover its current liabilities with its most liquid asset, cash.
- Brunswick Corp.'s cash ratio has also fluctuated, with Q2 2022 showing the lowest ratio of 0.43 and Q1 2022 the highest at 0.58.
- The decreasing trend in the cash ratio over time could indicate a potential strain on the company's ability to cover short-term obligations with cash alone.

In summary, Brunswick Corp. has maintained a current ratio above 1, demonstrating a healthy ability to meet short-term obligations. However, the consistently low quick ratio and a decreasing trend in the cash ratio suggest a reliance on less liquid assets to cover current liabilities. This may indicate a need for close monitoring of inventory management and cash flow to ensure sustainable liquidity in the future.

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 91.35 95.01 95.58 97.20 80.66 82.41 84.10 88.24 68.53 58.22 55.95 64.59 57.94 59.45 87.83 101.02 82.14 92.31 87.86 89.73

The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash received from customers. In the case of Brunswick Corp., the trend in the cash conversion cycle over the past eight quarters has shown slight fluctuations. The cycle ranged from a low of 89.77 days in Q4 2022 to a high of 105.20 days in Q1 2023.

On average, the cash conversion cycle for Brunswick Corp. over this period was approximately 98.51 days. The company's ability to efficiently manage its inventory, receivables, and payables is crucial in determining the cash conversion cycle. A lower cycle indicates that the company is able to generate cash quickly from its operations, which is generally considered favorable.

The fluctuations in the cash conversion cycle for Brunswick Corp. suggest potential variability in its operations and cash flow management. It is important for investors and stakeholders to monitor these trends to assess the company's liquidity and efficiency in converting its resources into cash. Further analysis and comparison to industry benchmarks would provide more insights into Brunswick Corp.'s performance in managing its working capital effectively.