Church & Dwight Company Inc (CHD)

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 1.70 1.62 1.53 1.33 1.08 1.47 1.41 1.18 1.18 1.08 1.01 0.65 0.59 0.74 0.82 0.87 0.80 1.49 1.28 1.03
Quick ratio 1.19 1.05 0.94 0.78 0.61 0.87 0.08 0.56 0.58 0.57 0.61 0.31 0.31 0.38 0.40 0.42 0.43 0.95 0.80 0.79
Cash ratio 0.73 0.60 0.43 0.30 0.24 0.48 -0.33 0.18 0.23 0.30 0.37 0.09 0.12 0.12 0.12 0.10 0.14 0.56 0.45 0.59

The liquidity ratios of Church & Dwight Company Inc show fluctuations over the years. The current ratio, which measures the company's ability to meet short-term obligations, has shown improvement in recent periods, with values increasing from a low of 0.59 in December 2021 to a high of 1.70 in December 2024.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibits variability. The ratio decreased sharply in the first half of 2023 but recovered in subsequent periods, reaching a high of 1.19 in December 2024.

The cash ratio, indicating the company's ability to cover immediate liabilities with cash and cash equivalents, experienced fluctuations as well. There was a drastic decline in the ratio in June 2023, indicating potential liquidity challenges, but it improved in the following periods, reaching a high of 0.73 in December 2024.

Overall, while there have been fluctuations in Church & Dwight's liquidity ratios, the company has generally shown an improvement in its ability to meet short-term obligations and maintain adequate levels of liquid assets to support its operations. Monitoring these liquidity ratios will be crucial for assessing the company's financial health and ability to weather uncertain economic conditions.

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 25.81 28.23 30.65 27.73 30.85 26.88 29.58 28.65 26.31 29.24 27.43 21.44 12.50 20.81 26.51 29.00 17.11 16.85 18.33 19.15

The cash conversion cycle of Church & Dwight Company Inc has demonstrated some fluctuations over the periods presented. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory into cash flows from sales.

From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 12.50 days to a high of 30.85 days. The cycle appeared to increase from 19.15 days on March 31, 2020, to a peak of 30.85 days on December 31, 2023, before decreasing again to 25.81 days on December 31, 2024.

The company's ability to manage its inventory, accounts receivable, and accounts payable effectively is reflected in its cash conversion cycle. A lower cycle indicates better efficiency in managing these aspects of the business. Church & Dwight may have experienced challenges in managing its working capital efficiently during some periods, as evidenced by the fluctuations in the cash conversion cycle.

The company should continue to monitor and analyze its cash conversion cycle to identify areas for improvement in working capital management, such as optimizing inventory levels, ensuring timely collection of receivables, and managing payments to suppliers effectively. By focusing on improving the cash conversion cycle, Church & Dwight can enhance its cash flow and overall financial performance.