Crane NXT Co (CXT)

Liquidity ratios

Dec 31, 2024 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
Current ratio 1.14 1.38 1.20 2.12 1.93 2.00 2.21 1.74 1.18 1.38 2.04 2.07 1.96 2.30 2.20 1.59 1.49 1.42 1.33 1.37
Quick ratio 0.29 0.36 0.34 0.74 0.68 0.73 0.87 0.52 0.44 0.41 0.77 0.64 0.61 0.59 0.51 0.57 0.93 0.86 0.84 0.80
Cash ratio 0.29 0.36 0.34 0.74 0.68 0.73 0.87 0.52 0.44 0.41 0.77 0.64 0.61 0.59 0.51 0.57 0.52 0.48 0.48 0.29

The current ratio of Crane NXT Co has shown fluctuations over the past few years, ranging from 1.18 to 2.30. The company's current assets have generally been sufficient to cover its current liabilities, indicating a reasonable level of liquidity. However, the ratio experienced some instabilities, especially in the most recent quarters, potentially signaling a need for closer monitoring of working capital management.

In terms of the quick ratio, Crane NXT Co has generally maintained a range between 0.29 and 0.93, with the ability to cover its immediate liabilities with its most liquid assets. The ratio dipped below 1 in a few quarters, indicating a reliance on inventory and prepaid expenses to meet short-term obligations. This may suggest a slight risk in the company's ability to pay off short-term debts quickly if needed.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, showed a range between 0.29 and 0.87. The ratio provides insights into the company's ability to handle immediate payment needs without relying on other current assets. Crane NXT Co demonstrated a varying but generally adequate level of cash reserves to meet short-term obligations.

Overall, while Crane NXT Co has maintained acceptable liquidity levels throughout the analyzed periods, the fluctuations in the ratios, especially the current ratio, merit further investigation to ensure a consistent ability to meet short-term financial commitments.

Additional liquidity measure

Dec 31, 2024 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
Cash conversion cycle days 64.32 78.01 83.25 83.74 54.92 45.18 38.71 109.87 95.42 92.38 90.21 82.46 79.06 81.24 88.24 86.77 104.10 99.53 100.91 104.65

The cash conversion cycle of Crane NXT Co has fluctuated over the periods analyzed. Starting at 104.65 days on March 31, 2020, the cycle decreased steadily to a low of 38.71 days on June 30, 2023. This indicates that the company was able to manage its cash, inventory, and receivables efficiently during this period. However, the cycle then increased to 109.87 days on March 31, 2023, reflecting potential challenges in managing working capital.

Subsequently, there was a marked improvement in the cash conversion cycle, with significant reductions observed in the following quarters. For instance, by December 31, 2023, the cycle had decreased to 54.92 days, indicating enhanced effectiveness in cash management. The trend continued positively, with further decreases noted in the cycle over the subsequent periods up to December 31, 2024, where it reached 64.32 days.

Overall, the company's cash conversion cycle exhibited volatility but showed an overall improvement from the initially high levels to more optimal figures by the end of the period under review. This suggests that Crane NXT Co made efforts to streamline its operations and enhance its working capital management, leading to a more efficient cash conversion cycle over time.