BWX Technologies Inc (BWXT)

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 1.96 2.25 2.23 2.24 2.18 2.50 2.41 2.44 2.10 2.09 2.08 1.94 1.68 2.05 1.15 1.88 1.46 1.85 1.66 2.00
Quick ratio 0.48 0.32 0.38 0.37 0.43 0.49 0.28 0.34 0.27 0.31 0.38 0.21 0.24 0.33 0.32 0.30 0.38 0.35 0.35 0.42
Cash ratio 0.16 0.07 0.12 0.12 0.20 0.14 0.10 0.13 0.11 0.14 0.17 0.07 0.08 0.18 0.24 0.15 0.09 0.13 0.17 0.24

Based on the provided data, we can analyze the liquidity ratios of BWX Technologies Inc over the past few years as follows:

1. Current Ratio: The current ratio measures the company's ability to cover its short-term obligations with its current assets. BWX Technologies Inc has shown some fluctuations in its current ratio over the years, ranging from a low of 1.15 in June 2021 to a high of 2.50 in September 2023. The current ratio has generally been above 1, indicating that the company has been able to meet its short-term obligations.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventories from current assets. BWX Technologies Inc's quick ratio has fluctuated over the years, ranging from a low of 0.21 in March 2022 to a high of 0.49 in September 2023. The quick ratio has generally been below 1, indicating that the company may have difficulty meeting its short-term obligations without relying on inventory sales.

3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, measuring a company's ability to cover its current liabilities with its cash and cash equivalents. BWX Technologies Inc's cash ratio has varied, with a low of 0.07 in December 2022 and a high of 0.24 in June 2021. The cash ratio has generally been below 0.2, showing that the company may have limited cash reserves to cover its short-term liabilities.

Overall, BWX Technologies Inc has maintained a current ratio above 1, indicating a generally healthy liquidity position. However, the quick ratio and cash ratio have shown more variability, suggesting that the company may need to carefully manage its short-term liquidity to ensure it can meet its obligations without relying heavily on inventory or cash reserves.

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 -0.35 -7.52 -8.01 -5.48 -6.48 -5.39 -13.40 -11.32 -12.58 -13.07 -13.28 -18.42 -27.94 -18.95 -19.57 -21.22 -13.28 -21.25 -20.28 -16.75

The cash conversion cycle of BWX Technologies Inc has shown a generally improving trend over the given periods, with the cycle consistently being in negative territory. This indicates that the company is efficient in managing its working capital, as it is able to convert its investments in inventory and accounts receivable into cash quickly.

It is noteworthy that the cash conversion cycle reached its lowest point at December 31, 2024, where it stood at -0.35 days, implying that the company was able to convert its resources into cash almost immediately. This suggests strong liquidity management practices and efficiency in operations.

Overall, the consistently negative cash conversion cycle values demonstrate that BWX Technologies Inc is effective in managing its cash flow, minimizing idle cash sitting in its operations, and efficiently utilizing its working capital.