Bunge Limited (BG)

Based on the provided data, Bunge Limited's liquidity ratios have shown improvement over the years. The current ratio has increased from 1.47 in 2020 to 2.15 in 2024, indicating the company's ability to meet its short-term obligations has strengthened.

The quick ratio, which excludes inventory from current assets, has also shown a positive trend, rising from 0.06 in 2020 to 0.51 in 2024. This signifies that Bunge Limited has an increasing ability to cover its immediate liabilities with its most liquid assets.

Furthermore, the cash ratio has followed a similar upward trajectory, starting at 0.06 in 2020 and reaching 0.51 in 2024. This demonstrates the company's enhanced capacity to settle its current liabilities using only its cash and cash equivalents.

Overall, Bunge Limited's liquidity position has improved steadily over the years, reflecting a strengthened ability to meet its short-term financial obligations and suggesting sound liquidity management practices.

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Additional liquidity measure

The cash conversion cycle of Bunge Limited has shown a positive trend over the past five years, decreasing from 67.78 days as of December 31, 2020, to 47.66 days as of December 31, 2024. This signifies that the company is efficiently managing its working capital and converting its resources into cash more quickly.

A lower cash conversion cycle indicates that Bunge Limited is taking less time to convert its investments in inventory and receivables into cash from sales, thereby improving its liquidity position. This may suggest effective inventory management, timely collection of receivables, and efficient payment to suppliers.

The decreasing trend in the cash conversion cycle implies that Bunge Limited has been more effective in managing its operating cycle, which could lead to improved cash flow and overall financial health. It is important for the company to continue optimizing its cash conversion cycle to maintain a strong cash position and sustainable operations.