Belden Inc (BDC)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.92 2.07 1.70 2.55 2.30 2.55 2.53 2.70 2.40 2.54 2.39 2.39 2.49 2.04 2.00 2.10 2.11 2.20 2.21 2.07
Quick ratio 1.25 1.30 1.16 1.68 1.60 1.83 1.80 1.88 1.76 1.80 1.61 1.60 1.36 1.41 1.39 1.40 1.53 1.58 1.23 0.97
Cash ratio 0.59 0.56 0.68 0.99 0.94 0.96 0.91 1.10 1.07 1.00 0.89 0.96 0.86 0.74 0.73 0.73 0.96 0.86 0.67 0.44

Belden Inc's liquidity ratios indicate the company's ability to meet its short-term obligations.

The current ratio, which measures the company's ability to cover its current liabilities with its current assets, has generally been above 2 over the past few years. This suggests that Belden Inc has a strong ability to meet its short-term obligations using its current assets, such as cash, accounts receivable, and inventory. However, there was a slight dip in the current ratio in the middle of 2024, which might be a point of concern as it indicates a potential decrease in liquidity.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Belden Inc's quick ratio has been relatively stable, staying above 1 for the most part. This indicates that the company has an adequate level of highly liquid assets to cover its short-term liabilities, even when inventory is excluded. However, there was a significant drop in the quick ratio at the end of 2024, which could imply a potential liquidity strain.

The cash ratio, the most conservative liquidity ratio, measures the company's ability to pay off its current liabilities with its cash and cash equivalents. Belden Inc's cash ratio has generally been increasing over the years, indicating an improvement in the company's ability to cover its short-term obligations with cash on hand. However, there was a decline in the cash ratio in the middle of 2024, which may suggest a decrease in the company's ability to meet its immediate obligations solely with cash.

Overall, while Belden Inc has shown consistent liquidity ratios above industry standards, the recent declines in some ratios, particularly towards the end of 2024, may warrant further monitoring to ensure the company's continued ability to meet its short-term financial obligations.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 67.26 82.27 91.37 81.11 65.70 74.12 81.88 74.22 59.80 73.93 72.21 65.47 53.05 71.75 73.81 76.99 62.82 73.18 71.67 62.57

The cash conversion cycle for Belden Inc has shown fluctuations over the periods analyzed. The cycle represents the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 2020 to June 2020, the cash conversion cycle increased from 62.57 days to 71.67 days, signaling a longer time taken to convert resources into cash. This trend continued with fluctuations in subsequent periods, reaching a peak of 91.37 days by June 2024.

A prolonged cash conversion cycle could indicate inefficiencies in managing inventory, collection of receivables, or payment of payables. On the other hand, a declining cycle may signify improved operational efficiency and liquidity management.

It is essential for Belden Inc to monitor and manage its cash conversion cycle effectively to optimize cash flow, improve liquidity, and enhance overall financial performance.