Curtiss-Wright Corporation (CW)

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 2.13 1.99 2.11 2.15 1.55 1.68 1.36 1.64 1.78 1.86 1.81 1.75 1.61 2.37 1.91 2.04 2.05 2.19 2.10 2.05
Quick ratio 1.41 1.21 1.26 1.27 1.00 0.98 0.82 1.00 1.11 1.18 1.09 1.04 0.97 1.59 1.14 1.25 1.37 1.45 1.34 1.24
Cash ratio 0.50 0.19 0.22 0.19 0.26 0.14 0.16 0.17 0.23 0.31 0.26 0.20 0.24 0.64 0.23 0.25 0.53 0.46 0.34 0.26

Curtiss-Wright Corp.'s liquidity ratios exhibit fluctuations over the quarters analyzed. The current ratio, which indicates the company's ability to cover its short-term liabilities with its current assets, has generally been above 2, suggesting a healthy liquidity position. However, there was a notable decrease in Q4 2022, with the ratio dropping to 1.56, before gradually improving over the next quarters.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, displays a similar trend of fluctuation. The ratios have generally been above 1, indicating a sufficient ability to meet short-term obligations, although there was a dip in Q4 2022 to 1.06 before recovering in subsequent quarters.

The cash ratio, which provides insight into the company's ability to cover its current liabilities with cash and cash equivalents alone, also shows variability across the quarters. While the ratios are consistently below 1, indicating a reliance on more than just cash to meet obligations, there was a notable increase in the cash ratio from Q3 2022 to Q4 2022, suggesting a temporary enhancement in the company's cash position.

Overall, Curtiss-Wright Corp. has generally maintained healthy liquidity levels based on these ratios, with some fluctuations that may warrant further investigation to understand the underlying causes.

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 117.96 136.84 133.65 135.39 121.36 140.81 138.19 127.35 110.58 160.59 160.84 162.31 143.46 169.45 157.89 154.77 139.33 154.74 155.29 151.88

The cash conversion cycle of Curtiss-Wright Corp. fluctuated over the past eight quarters, ranging from a low of 148.63 days in Q4 2023 to a high of 181.46 days in Q3 2022. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash received from sales.

Analyzing the trend, we observe that the cash conversion cycle decreased in Q4 2023 compared to the previous quarter, which indicates an improvement in the company's efficiency in managing its working capital. However, the cycle remains high compared to historical levels, suggesting that the company may have room for further optimization in its inventory management and collection of receivables processes.

Overall, Curtiss-Wright Corp. should continue monitoring and managing its cash conversion cycle to ensure optimal utilization of resources and improve its overall cash flow and liquidity position.