Brinks Company (BCO)

The current ratio of Brinks Company has shown a fluctuating trend over the years, starting at 1.65 in 2020 and reaching 1.52 in 2024. This indicates that the company's ability to meet its short-term obligations with its current assets slightly decreased over the period.

In terms of the quick ratio, which accounts for only the most liquid assets, Brinks Company has also experienced variations in its ability to cover its current liabilities. Starting at 0.63 in 2020, the quick ratio improved to 0.74 in 2022 before declining to 0.73 in 2024.

Furthermore, the cash ratio, representing the company's ability to cover current liabilities with its cash and cash equivalents, followed a similar pattern. It started at 0.63 in 2020, increased to 0.74 in 2022 but then decreased to 0.73 in 2024.

Overall, the liquidity ratios of Brinks Company suggest that while the company has generally been able to meet its short-term obligations with its current assets, there has been some fluctuation in its liquidity position over the years, indicating a need for careful monitoring and management of its liquidity in the future.

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Additional liquidity measure

The cash conversion cycle (CCC) is a key metric that measures the length of time it takes for a company to convert its investments in inventory and other resources back into cash flow from sales.

Analyzing the data provided for Brinks Company's CCC over the years reveals fluctuations in its efficiency in managing cash flow.

As of December 31, 2020, Brinks Company had a CCC of 35.41 days, indicating that it took approximately 35 days for the company to convert its investments in resources into cash flow from sales.

By December 31, 2021, the CCC slightly increased to 37.61 days, suggesting a potential slowdown in the company's cash conversion efficiency.

Strikingly, Brinks Company reported a CCC of 0.00 days on December 31, 2022. A CCC of zero implies that the company is able to generate cash from sales before paying its suppliers for inventory, which could be an indication of excellent cash flow management or possible data reporting errors.

Subsequently, the CCC increased significantly to 49.92 days by December 31, 2023, indicating a possible delay in the company's ability to convert its investments back into cash flow.

Lastly, as of December 31, 2024, Brinks Company showed a notably improved CCC of 2.37 days, signifying a much quicker cash conversion cycle compared to previous years.

In conclusion, the analysis of Brinks Company's cash conversion cycle highlights fluctuations in the company's efficiency in managing its working capital and converting investments into cash flow over the years. Further examination of the underlying factors affecting these changes would be necessary to fully understand the company's cash flow dynamics.