Bunge Limited (BG)

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 2.15 2.07 2.03 1.99 2.13 2.02 2.07 1.83 1.75 1.63 1.51 1.51 1.77 1.69 1.70 1.52 1.47 1.51 1.53 1.38
Quick ratio 0.51 0.39 0.17 0.37 0.35 0.28 0.17 0.30 0.13 0.10 0.08 0.05 0.15 0.15 0.09 0.05 0.06 0.07 0.08 0.06
Cash ratio 0.51 0.39 0.17 0.37 0.35 0.28 0.17 0.30 0.13 0.10 0.08 0.05 0.15 0.15 0.09 0.05 0.06 0.07 0.08 0.06

The liquidity ratios of Bunge Limited, including the current ratio, quick ratio, and cash ratio, have shown a generally improving trend from March 2020 to December 2024.

The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, increased steadily over the period, reaching a high of 2.15 by December 31, 2024. This suggests that Bunge has a solid ability to cover its short-term liabilities with its current assets.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also exhibited an upward trend, although with more fluctuation compared to the current ratio. It peaked at 0.51 as of December 31, 2024. This indicates that Bunge has an improved capacity to meet its short-term obligations without relying on inventory sales.

The cash ratio, which assesses the company's ability to settle its current liabilities using only its most liquid assets, mirrored the trend of the quick ratio, showing an upward trajectory and closing at 0.51 on December 31, 2024. This suggests Bunge has enhanced its ability to cover short-term debts with its cash reserves.

Overall, the liquidity ratios of Bunge Limited demonstrate a strengthening liquidity position over the analyzed period, indicating the company's improved 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 47.66 53.49 56.57 51.60 47.41 48.46 53.98 51.85 48.29 46.48 62.63 68.38 55.16 56.80 64.60 75.90 67.78 63.54 56.41 49.62

The cash conversion cycle for Bunge Limited has exhibited fluctuations over the years, indicating changes in the company's efficiency in managing its working capital.

From March 2020 to December 2021, the cash conversion cycle increased steadily from 49.62 days to 55.16 days, reaching a peak of 75.90 days in March 2021. This suggests that the company took longer to convert its investments in inventory and other resources back into cash during this period.

However, from March 2022 to December 2024, there was a general downward trend in the cash conversion cycle, indicating an improvement in Bunge Limited's working capital management. The cycle decreased from 68.38 days in March 2022 to 47.66 days in December 2024.

The decrease in the cash conversion cycle signifies that the company was able to optimize its inventory turnover and receivables collection, leading to a more efficient conversion of resources into cash. This trend is generally positive as it indicates that Bunge Limited is becoming more effective in managing its working capital, potentially enhancing its overall financial performance and liquidity position.