Clearwater Paper Corporation (CLW)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 1.97 2.40 2.25 2.14 1.88 1.93 1.86 1.98 1.92 1.88 1.95 2.13 1.94 2.05 1.96 1.79 1.66 1.57 0.95 0.94
Quick ratio 0.79 1.09 0.90 0.76 0.78 0.78 0.86 0.81 0.76 0.73 0.80 0.82 0.80 0.95 0.97 0.92 0.64 0.56 0.39 0.35
Cash ratio 0.15 0.42 0.16 0.06 0.17 0.17 0.23 0.14 0.10 0.11 0.24 0.24 0.15 0.20 0.19 0.21 0.07 0.03 0.08 0.02

Clearwater Paper Corp's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations using its current assets, has ranged from 1.86 to 2.40. A current ratio above 2 indicates a strong ability to cover short-term liabilities, and Clearwater Paper Corp generally maintained a healthy current ratio throughout the periods analyzed.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, ranged from 0.82 to 1.13. A quick ratio above 1 typically signifies good liquidity, and Clearwater Paper Corp generally demonstrated adequate liquidity based on this metric, although there were fluctuations over the quarters.

The cash ratio, which indicates the extent to which current liabilities can be covered by the company's cash and cash equivalents, ranged from 0.14 to 0.46. A cash ratio above 0.2 is generally considered strong, and although Clearwater Paper Corp's cash ratio varied, it mostly stayed within an acceptable range during the periods analyzed.

Overall, Clearwater Paper Corp's liquidity ratios indicate that the company has generally maintained a healthy liquidity position, with the ability to meet its short-term obligations. However, stakeholders should continue to monitor these ratios to ensure the company's liquidity remains stable and adequate.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 62.16 61.54 65.34 62.55 53.72 59.36 51.35 56.82 57.88 58.40 59.27 58.49 57.21 60.07 58.44 61.20 60.96 59.82 56.16 53.07

The cash conversion cycle of Clearwater Paper Corp has shown some fluctuations over the past eight quarters. In Q2 2022, the company had the shortest cash conversion cycle at 52.21 days, indicating a more efficient use of cash during that period. However, this efficiency slightly deteriorated in the following quarter, Q3 2022, with a cash conversion cycle of 60.81 days.

The cycle improved in Q4 2022 to 55.35 days but increased again in Q1 2023 to 64.95 days. Despite a slight decrease in Q2 2023 to 67.90 days, the cycle remained relatively high compared to previous quarters. However, there was a decrease in Q3 2023 to 64.19 days, but it increased again in Q4 2023 to 64.78 days.

Overall, Clearwater Paper Corp's cash conversion cycle has shown some variability, indicating fluctuations in the company's efficiency in converting its investments in raw materials and production into cash receipts from sales. It is essential for the company to focus on managing its cash conversion cycle effectively to optimize working capital and liquidity.