Boise Cascad Llc (BCC)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 3.46 | 3.78 | 2.94 | 2.50 | 2.66 |
| Quick ratio | 1.63 | 2.42 | 1.89 | 1.52 | 1.34 |
| Cash ratio | 1.60 | 1.83 | 1.17 | 0.77 | 0.74 |
Boise Cascade Co's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been consistently above 2 in recent years, indicating a healthy level of current assets to cover current liabilities. It peaked in 2022 at 3.78 before decreasing slightly to 3.46 in 2023.
The quick ratio, which excludes inventory from current assets, also reflects a strong liquidity position for Boise Cascade Co. The quick ratio has generally been above 1, suggesting the company has an adequate level of liquid assets to cover short-term liabilities. The trend shows a consistent improvement over the years, reaching 2.26 in 2023.
The cash ratio, measuring the most stringent form of liquidity, has also been increasing over the years. This ratio shows the ability of the company to pay off its current liabilities using only its cash and cash equivalents. The cash ratio has improved steadily, reaching 1.63 in 2023.
Overall, Boise Cascade Co's liquidity ratios demonstrate a robust liquidity position, with sufficient current assets and cash reserves to meet its short-term financial obligations. The increasing trend in these ratios over the years indicates an improving liquidity position for the company.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 43.54 | 35.85 | 38.64 | 40.39 | 40.82 |
The cash conversion cycle for Boise Cascade Co has shown variability over the past five years. In 2023, the company's cash conversion cycle increased to 46.98 days from 38.00 days in 2022, indicating that it took longer for the company to convert its inventory into cash. This could be a result of longer inventory holding periods or slower collection of accounts receivable.
Comparing to 2021, where the cash conversion cycle was 40.07 days, there was a slight increase in 2023, suggesting a deterioration in the efficiency of the company's working capital management.
The cash conversion cycle in 2020 and 2019 were lower at 26.08 days and 18.21 days, respectively, indicating that the company was able to convert its inventory into cash more quickly during those years. A lower cash conversion cycle is generally seen as positive, as it signifies a more efficient management of working capital.
Overall, the trend in Boise Cascade Co's cash conversion cycle has been fluctuating, with 2023 showing an increase compared to the previous years. It is important for the company to monitor and manage its cash conversion cycle effectively to ensure optimal working capital utilization and operational efficiency.