Coca-Cola Consolidated Inc. (COKE)

Coca-Cola Consolidated Inc.'s liquidity ratios indicate the company's ability to meet its short-term obligations. Looking at the current ratio, which measures the company's ability to cover its current liabilities with its current assets, we see a fluctuating trend over the years. The current ratio ranged from a low of 1.18 on March 31, 2022 to a peak of 2.47 on September 30, 2024. Overall, the current ratio increased over the period, suggesting an improvement in the company's short-term liquidity position.

Moving on to the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, we observe a similar fluctuating pattern. The quick ratio ranged from a low of 0.07 on June 30, 2021 to a high of 1.39 on September 30, 2024, showing variability in the company's ability to cover its current liabilities without relying on inventory. Notably, the quick ratio improved significantly from 0.07 on June 30, 2021, to 1.39 on September 30, 2024, indicating a strengthened ability to meet short-term obligations without relying on inventory.

Lastly, the cash ratio, which focuses solely on the company's cash and cash equivalents to cover its current liabilities, displayed a trend similar to that of the quick ratio. The cash ratio ranged from a low of 0.07 on June 30, 2021, to a high of 1.39 on September 30, 2024. The significant improvement in the cash ratio over the period indicates that Coca-Cola Consolidated Inc. has enhanced its ability to settle its short-term obligations with its readily available cash resources.

In conclusion, the liquidity ratios of Coca-Cola Consolidated Inc. show a generally improving trend over the years, reflecting enhanced ability to meet its short-term financial commitments and indicating a strengthened liquidity position.

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Additional liquidity measure

The cash conversion cycle of Coca-Cola Consolidated Inc. provides insight into how efficiently the company manages its cash flows related to its operations.

Analyzing the data provided, we observe fluctuations in the cash conversion cycle over the quarters. The trend indicates that the company took approximately 25.99 days in March 2020 to convert its investments in inventory into cash receipts from sales. This figure decreased steadily to 23.79 days by September 2020, reflecting an improvement in the efficiency of inventory management and collection of accounts receivable.

However, the trend then reversed, as the cash conversion cycle increased to 30.63 days by December 2021, indicating a potential delay in converting sales into cash. The cycle then fluctuated between 27.37 to 32.48 days over the subsequent quarters, with some variability in the efficiency of the company's working capital management.

Overall, while the cash conversion cycle for Coca-Cola Consolidated Inc. has shown fluctuations, it is important for the company to focus on optimizing its inventory turnover and accounts receivable collection processes to maintain a healthy cash conversion cycle and improve overall liquidity and profitability.