Cencora Inc. (COR)

Liquidity ratios

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 Dec 31, 2019
Current ratio 0.88 0.89 0.89 0.88 0.88 0.88 0.89 0.91 0.91 0.92 0.92 0.95 0.94 0.94 1.07 0.99 0.98 0.98 0.97 0.95
Quick ratio 0.50 0.52 0.50 0.48 0.48 0.48 0.47 0.46 0.51 0.50 0.50 0.49 0.51 0.52 0.64 0.57 0.56 0.54 0.58 0.52
Cash ratio 0.06 0.06 0.04 0.06 0.05 0.03 0.03 0.04 0.08 0.07 0.07 0.08 0.06 0.06 0.20 0.14 0.14 0.11 0.11 0.11

The analysis of Cencora Inc.'s liquidity ratios reveals fluctuations in the company's ability to meet its short-term obligations over the past few quarters.

The current ratio, a measure of the company's ability to pay off its current liabilities with current assets, has been hovering around 0.88 to 0.92, indicating that Cencora may have difficulty meeting its short-term obligations with its current asset base. However, the ratio showed a slight improvement from 0.88 in September 2024 to 0.91 in June 2024.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also depicted a similar trend, ranging from 0.46 to 0.52. This indicates that Cencora may struggle to cover its immediate liabilities using only its most liquid assets.

The cash ratio, which considers only cash and cash equivalents in relation to current liabilities, varied significantly, from 0.03 to 0.08. This implies that Cencora's cash position has been fluctuating, with the company having relatively low cash reserves to cover its short-term obligations in some periods.

Overall, the liquidity ratios of Cencora Inc. suggest that the company may face challenges in meeting its short-term financial commitments, particularly in terms of having enough liquid assets to cover current liabilities. It is important for the company to closely monitor and manage its liquidity position to ensure financial stability and mitigate potential cash flow issues.

Additional liquidity measure

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 Dec 31, 2019
Cash conversion cycle days -11.30 -11.06 -9.19 -11.45 -11.69 -10.07 -10.56 -10.81 -10.55 -8.64 -8.42 -9.55 -8.55 -7.56 -8.44 -10.59 -10.22 -9.07 -10.30 -10.88

The cash conversion cycle of Cencora Inc. has been somewhat volatile over the past few quarters, displaying both positive and negative values. The cash conversion cycle indicates the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales.

From the data provided, it is evident that Cencora Inc. has managed to keep its cash conversion cycle in negative territory for the majority of the periods, indicating that the company is efficient in managing its working capital. A negative cash conversion cycle signifies that the company is able to collect cash from customers before having to pay its suppliers, which can improve cash flow and liquidity.

However, the fluctuation in the cash conversion cycle values over the quarters suggests some variability in the company's operational efficiency and management of working capital. It is important for Cencora Inc. to monitor and analyze the factors contributing to these fluctuations to ensure long-term stability and improved operational performance.

Overall, Cencora Inc. has shown a generally efficient cash conversion cycle, but the variability in the values should be investigated and managed to maintain consistent operational efficiency and financial health.