Curtiss-Wright Corporation (CW)

Curtiss-Wright Corp.'s liquidity ratios have shown varying trends over the past five years.

1. Current Ratio: The current ratio measures the company's ability to cover its short-term liabilities with its current assets. Curtiss-Wright Corp.'s current ratio improved steadily from 2019 to 2023, with a significant increase from 1.61 in 2020 to 2.13 in 2023. This indicates that the company has a stronger ability to meet its short-term obligations with its current assets.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Curtiss-Wright Corp.'s quick ratio also improved over the years, showing a similar upward trend as the current ratio. The quick ratio increased from 1.04 in 2020 to 1.50 in 2023, indicating an enhanced ability to cover short-term liabilities with near-cash assets.

3. Cash Ratio: The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents alone. Curtiss-Wright Corp.'s cash ratio fluctuated over the years, with a notable decrease from 0.63 in 2019 to 0.32 in 2022, before increasing slightly to 0.59 in 2023. Despite the fluctuations, the cash ratio remained above 0.30, suggesting that the company has maintained a reasonable level of liquidity in terms of cash reserves.

Overall, the trend in all three liquidity ratios indicates that Curtiss-Wright Corp. has generally improved its liquidity position, with higher current, quick, and cash ratios in the recent years. This suggests that the company has a stronger ability to meet its short-term obligations and indicates a favorable liquidity position for potential investors and creditors.

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Additional liquidity measure

The cash conversion cycle for Curtiss-Wright Corp. has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 148.63 days from 152.77 days in 2022, indicating an improvement in managing its cash flows. However, compared to 2021 and 2019, the cycle was slightly higher.

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cycle is generally better as it shows efficient management of working capital. Curtiss-Wright Corp. has shown some variability in its cash conversion cycle, which suggests that the company may need to focus on streamlining its operations to reduce the overall time it takes to convert its investments into cash.

Overall, the company's cash conversion cycle has been relatively stable over the past five years, indicating a consistent approach to managing cash flows and working capital efficiency. Further analysis of the company's operational and financial strategies may provide insights into areas for improvement in optimizing the cash conversion cycle.