Crane NXT Co (CXT)

Crane NXT Co's liquidity ratios have shown varying trends over the past five years.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, experienced fluctuations within a range of 0.99 to 1.96. In 2023, the current ratio improved significantly to 1.93, indicating a stronger liquidity position compared to the previous year.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Crane NXT Co's quick ratio ranged from 0.93 to 1.79 over the five-year period. The ratio dropped to 1.32 in 2023, signaling a decrease in the company's ability to quickly cover its immediate liabilities using the most liquid assets.

The cash ratio, which reflects the company's ability to pay off its current liabilities with cash and cash equivalents, fluctuated between 0.43 and 1.04. In 2023, the cash ratio decreased to 0.68, indicating less cash on hand relative to current liabilities compared to the previous year.

Overall, while Crane NXT Co has shown improvements in its current ratio, the company's quick ratio and cash ratio have shown declines in 2023, which may indicate potential liquidity challenges in covering short-term obligations with the most liquid assets. Further analysis and monitoring of liquidity trends are advisable to ensure the company's financial health and stability.

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Additional liquidity measure

Crane NXT Co's cash conversion cycle has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle was 72.57 days, which represents an increase from the prior year. This indicates that it took Crane NXT Co longer to convert its investments in inventory and receivables into cash during the year.

Comparing to 2021 when the cash conversion cycle was 80.14 days, there was an improvement in 2022 with a cycle of 55.89 days. However, the cycle lengthened again in 2023, suggesting potential challenges in managing working capital effectively.

Looking further back, the company's performance in managing its working capital was better in 2019 and 2020 when the cash conversion cycle was 94.05 days and 96.50 days, respectively. The decrease in the cash conversion cycle in the subsequent years indicated improvements in efficiency in the company's working capital management.

Overall, Crane NXT Co's cash conversion cycle has shown variability over the years, with fluctuations impacting the company's ability to efficiently convert its investments in inventory and receivables into cash. Further analysis and monitoring of working capital management practices may be required to optimize cash flow operations in the future.