Cencora Inc. (COR)
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 | 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 | 0.95 | 0.95 | 0.95 |
| Quick ratio | 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 | 0.53 | 0.52 | 0.52 |
| Cash ratio | 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 | 0.11 | 0.10 | 0.10 |
The liquidity ratios of Cencora Inc. show some concerning trends. The current ratio, which measures the company's ability to meet short-term liabilities with short-term assets, has been decreasing over the past eight quarters, indicating a potential weakening in the company's liquidity position.
Similarly, the quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also shown a declining trend. This indicates that the company may have difficulty meeting its short-term obligations with its most liquid assets.
The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also seen a decline over the past two quarters. This may suggest that the company has less cash available to cover its short-term obligations.
Overall, the declining trends in these liquidity ratios indicate that Cencora Inc. may be facing challenges in maintaining sufficient liquidity to meet its short-term financial obligations. Management should carefully assess the company's cash management and working capital practices to address these concerns and ensure its ability to meet short-term obligations.
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 | -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 | -11.07 | -10.40 | -10.59 |
The cash conversion cycle of Cencora Inc. has shown slight fluctuations over the past eight quarters. It has ranged from a low of -11.69 days to a high of -8.42 days. The negative values indicate that the company's operating cycle is shorter than its payment cycle, which suggests efficient management of working capital. This could be due to effective inventory management and speedy collection of receivables.
The trend indicates a general improvement in the cash conversion cycle over the past two years, with a consistent reduction in the number of days. The company appears to be effectively managing its cash flows and efficiently converting inventory and receivables into cash. This improvement may positively impact the company's liquidity and overall financial health.
However, it is important to note that a excessively negative cash conversion cycle may also indicate aggressive customer or supplier payment terms, which could potentially strain relationships with stakeholders. Therefore, the company should continue monitoring its cash conversion cycle to maintain a balance between efficient working capital management and sustainable relationships with its suppliers and customers.