Brinks Company (BCO)

Brink's Co. shows stable liquidity ratios over the past five years, indicating its ability to meet short-term obligations efficiently. The current ratio has improved steadily from 1.23 in 2019 to 1.43 in 2023, suggesting a strengthening ability to cover current liabilities with current assets. The quick ratio follows a similar trend, increasing from 1.07 in 2019 to 1.17 in 2023, demonstrating the company's ability to meet short-term obligations without relying on inventory.

Furthermore, the cash ratio has also improved over the years, from 0.41 in 2019 to 0.76 in 2023, reflecting an increased ability to cover current liabilities solely with cash and cash equivalents. This indicates a better liquidity position and reduced reliance on other current assets to meet short-term obligations.

Overall, the liquidity ratios of Brink's Co. show a positive trend, with improving current, quick, and cash ratios over the past five years. This signifies a healthy liquidity position and the company's ability to efficiently manage its short-term financial commitments.

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Additional liquidity measure

The cash conversion cycle for Brink`s Co. has fluctuated over the past five years. The cycle decreased from 43.35 days in 2020 to 35.04 days in 2023, indicating an improvement in the company's efficiency in managing its cash flows and working capital during this period. However, it is worth noting that there was a slight increase in the cash conversion cycle in 2022 compared to 2021.

A lower cash conversion cycle suggests that Brink`s Co. is taking less time to convert its inventory and receivables into cash, which is a positive indicator of operational efficiency and liquidity management. Conversely, a higher cash conversion cycle may indicate inefficiencies in the company's operations or difficulties in collecting receivables.

Overall, Brink`s Co. should continue to monitor and manage its cash conversion cycle to ensure optimal working capital management and sustainable business operations.