CF Industries Holdings Inc (CF)
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 | 3.08 | 2.81 | 4.70 | 3.94 | 3.81 | 4.52 | 6.55 | 4.46 | 3.69 | 2.66 | 3.41 | 1.72 | 1.81 | 1.79 | 2.44 | 1.67 | 1.51 | 1.72 | 1.85 | 1.20 |
| Quick ratio | 1.97 | 1.85 | 3.05 | 2.57 | 2.54 | 3.92 | 5.57 | 3.62 | 2.60 | 1.75 | 2.36 | 1.21 | 1.18 | 0.84 | 1.34 | 1.00 | 0.84 | 0.94 | 0.92 | 0.61 |
| Cash ratio | 1.97 | 1.85 | 3.05 | 2.57 | 2.54 | 3.92 | 5.57 | 3.62 | 2.60 | 1.75 | 2.36 | 1.21 | 1.18 | 0.84 | 1.34 | 1.00 | 0.84 | 0.94 | 0.92 | 0.61 |
CF Industries Holdings Inc has shown a consistent improvement in its current ratio over the past few years, indicating a strengthening liquidity position. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, increased from 1.20 as of March 31, 2020, to 4.70 as of June 30, 2024. This trend suggests the company has ample current assets to meet its short-term liabilities.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a positive trend, increasing from 0.61 as of March 31, 2020, to 3.05 as of June 30, 2024. This indicates that CF Industries Holdings Inc has a strong ability to meet its short-term obligations without relying on selling its inventory.
The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also shown a favorable trend, increasing from 0.61 as of March 31, 2020, to 1.97 as of December 31, 2024. This indicates that the company has a sufficient amount of cash to cover its short-term liabilities.
Overall, the liquidity ratios of CF Industries Holdings Inc reflect a solid and improving financial position, with increasing current, quick, and cash ratios over the period under review.
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 | 29.29 | 27.76 | 28.07 | 24.70 | 26.88 | 26.57 | 23.87 | 29.59 | 32.49 | 34.06 | 37.21 | 39.04 | 35.88 | 41.37 | 29.99 | 41.73 | 31.52 | 33.75 | 30.48 | 40.66 |
The cash conversion cycle of CF Industries Holdings Inc has fluctuated over the past few years. It decreased from 40.66 days on March 31, 2020, to a low of 23.87 days on June 30, 2023. This indicates the company became more efficient in converting its investments in inventory and other resources into cash during this period.
However, the cash conversion cycle increased to 29.29 days on December 31, 2024, which suggests a longer time frame for CF Industries to convert its resources back into cash. Overall, the company should aim to manage its working capital efficiently to optimize its cash conversion cycle and ensure steady cash flows.