Boise Cascad Llc (BCC)

Boise Cascade LLC has shown consistent improvement in its current ratio over the years, indicating a healthy ability to meet its short-term obligations. The current ratio increased from 2.50 in 2020 to 3.34 in 2024. This suggests that the company's current assets, such as cash, inventory, and accounts receivable, are increasing relative to its current liabilities.

Similarly, the quick ratio, which measures the company's ability to meet its short-term liabilities with its most liquid assets, also improved steadily from 0.77 in 2020 to 1.26 in 2024. This indicates that Boise Cascade LLC has a strong liquidity position and can quickly cover its immediate obligations without relying on inventory sales.

Furthermore, the cash ratio, which specifically focuses on the company's ability to cover its current liabilities with cash and cash equivalents, also demonstrated a similar positive trend. The cash ratio increased from 0.77 in 2020 to 1.26 in 2024, showing that the company has a healthy cash position to meet its short-term financial commitments.

Overall, based on the liquidity ratios, Boise Cascade LLC appears to have a strong financial standing with improving liquidity positions over the years, indicating efficient management of its current assets and liabilities.

---

Additional liquidity measure

The cash conversion cycle of Boise Cascad Llc has fluctuated over the years. It decreased from 40.51 days in December 2020 to 38.28 days in December 2021, indicating an improvement in their efficiency in converting resources into cash during that period. However, the cycle increased to 39.34 days in December 2022, followed by a further increase to 48.07 days in December 2023, and a significant jump to 54.36 days by December 2024.

The increasing trend in the cash conversion cycle suggests that the company may be taking longer to convert its investments in inventory into sales and subsequently into cash. This could potentially indicate issues related to inventory management, sales collection, or payment terms with suppliers and customers.

Boise Cascad Llc may need to evaluate its operational processes to streamline inventory management, improve sales collection efficiency, and negotiate favorable payment terms to reduce the cash conversion cycle and enhance its overall liquidity and cash flow position.