Crown Holdings Inc (CCK)

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 1.22 1.21 1.05 1.19 1.15 1.13 1.30 1.30 1.18 1.24 0.95 0.99 1.09 1.10 1.57 1.23 1.15 1.19 1.15 1.31
Quick ratio 0.74 0.81 0.68 0.71 0.72 0.65 0.69 0.66 0.61 0.62 0.48 0.50 0.59 0.74 0.52 0.65 0.63 0.67 0.57 0.72
Cash ratio 0.26 0.43 0.30 0.29 0.31 0.20 0.15 0.11 0.14 0.09 0.08 0.08 0.13 0.41 0.13 0.16 0.27 0.17 0.11 0.24

Crown Holdings Inc's liquidity ratios have shown some fluctuations over the period under review. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally remained above 1, indicating a healthy liquidity position. However, there was a slight decline in the current ratio from March 31, 2022, to June 30, 2022, but it recovered and remained relatively stable thereafter.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibited fluctuations. Despite some variability, the quick ratio generally stayed below 1, suggesting that the company may have some difficulty meeting its short-term obligations without relying on inventory.

The cash ratio, which reflects the company's ability to pay off its current liabilities with cash and cash equivalents, showed an overall increasing trend, indicating an improvement in the company's ability to cover its short-term obligations with cash on hand.

Overall, based on the liquidity ratios analyzed, Crown Holdings Inc appears to have maintained a reasonably strong liquidity position, with the ability to meet its short-term obligations, although there are some fluctuations that may warrant further monitoring and analysis.

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 18.77 20.70 30.75 34.61 26.62 36.71 44.87 48.08 30.30 38.00 29.44 36.68 14.78 27.94 29.94 37.26 17.35 35.78 36.74 33.46

Crown Holdings Inc has shown fluctuations in its cash conversion cycle over the past few years. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the data provided, the cash conversion cycle for Crown Holdings Inc ranged from 14.78 days to 48.08 days between December 31, 2021, and March 31, 2023. This indicates varying efficiency in managing its working capital during this period.

A lower cash conversion cycle, such as the 14.78 days observed on December 31, 2021, suggests that the company is efficient in converting its investment in inventory into cash quickly. On the other hand, a higher cycle, like the 48.08 days on March 31, 2023, indicates potential inefficiencies in managing working capital, which can result in tied-up funds and decreased liquidity.

During the later period from December 31, 2023, to December 31, 2024, the cash conversion cycle decreased from 26.62 days to 18.77 days. This improvement suggests that Crown Holdings Inc made efforts to streamline its operations, manage inventory more effectively, and accelerate its cash conversion process.

Overall, analyzing the cash conversion cycle can provide insights into a company's operational efficiency, working capital management, and liquidity position. Crown Holdings Inc should continue monitoring and optimizing its cash conversion cycle to ensure efficient use of its resources and maintain a healthy financial position.