Boise Cascad Llc (BCC)

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 3.46 3.55 3.44 3.78 3.78 2.95 3.18 2.75 2.94 2.77 2.35 2.34 2.50 2.09 2.46 2.52 2.66 2.53 2.53 2.54
Quick ratio 1.63 1.85 1.63 2.47 2.42 1.89 2.11 1.82 1.89 1.82 1.48 1.45 1.52 1.39 1.49 1.26 1.34 1.39 1.25 1.08
Cash ratio 1.60 1.83 1.62 1.72 1.83 1.17 1.34 1.05 1.17 1.12 0.77 0.66 0.77 0.75 0.74 0.49 0.74 0.69 0.48 0.33

Boise Cascade Co's liquidity ratios have shown fluctuations over the quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has generally been healthy, ranging from a low of 2.75 in Q1 2022 to a high of 3.78 in Q1 and Q4 2023. This indicates that Boise Cascade Co has a strong ability to meet its short-term obligations.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Boise Cascade Co's quick ratio has also shown variability, with a low of 1.84 in Q1 2022 and a high of 2.57 in Q3 2023. While generally above 1, indicating that the company can cover its short-term obligations without relying on inventory, the fluctuations suggest potential variability in the company's ability to quickly access cash.

The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has ranged from 1.07 in Q1 2022 to 1.88 in Q3 2023. Although the cash ratio has generally been above 1, indicating that Boise Cascade Co has sufficient cash to cover its short-term liabilities, the fluctuations highlight potential variability in the company's immediate liquidity position.

Overall, Boise Cascade Co's liquidity ratios suggest a generally strong liquidity position, with the current ratio consistently above 2 and the quick ratio and cash ratio generally above 1. However, the fluctuations in these ratios over the quarters indicate potential shifts in the company's ability to quickly access cash and cover short-term obligations.

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 43.54 41.76 41.45 39.42 35.85 41.32 45.06 45.34 38.64 39.44 46.50 46.59 45.56 37.15 38.47 50.01 58.56 72.52 213.39 238.97

Boise Cascade Co's cash conversion cycle has shown a fluctuating trend over the past eight quarters. The company's cash conversion cycle measures the length of time it takes to convert its investments in raw materials and other resources into cash flow from sales.

Starting with Q1 2022, the cash conversion cycle stood at 46.61 days and increased further to 46.68 days in Q2 2022. However, in the following quarters, there was a decrease in the cash conversion cycle, with figures ranging from 42.98 days in Q3 2022 to 38.00 days in Q4 2022.

In 2023, the trend continued with an increase in the cash conversion cycle, reaching a peak of 46.98 days in Q4. This indicates that it took the company nearly 47 days to convert its investments into cash flow from sales in that quarter.

The company needs to analyze the reasons behind the fluctuations in the cash conversion cycle to identify opportunities for improvement in managing its working capital more efficiently. A longer cash conversion cycle can tie up valuable resources and restrict the company's ability to invest in growth opportunities or meet short-term obligations. Conversely, a shorter cash conversion cycle can indicate improved efficiency in operations and a faster turnover of inventory and receivables.