Crane NXT Co (CXT)

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 1.93 2.00 2.21 1.74 0.99 1.38 2.04 2.07 1.96 2.30 2.20 1.59 1.49 1.42 1.33 1.37 1.64 2.24 2.17 1.95
Quick ratio 1.32 1.31 1.51 1.04 1.79 0.86 1.35 1.03 1.20 1.26 1.11 1.03 0.93 0.86 0.84 0.80 1.04 1.42 1.36 1.18
Cash ratio 0.68 0.73 0.87 0.52 1.04 0.41 0.77 0.39 0.61 0.59 0.51 0.56 0.52 0.48 0.48 0.29 0.43 0.60 0.50 0.36

Crane NXT Co's liquidity ratios provide insights into its ability to meet short-term obligations and manage cash flow effectively.

The current ratio, which measures the company's ability to pay its short-term liabilities with its current assets, has been fluctuating over time. In the most recent quarter, the current ratio of 1.93 indicates that the company has $1.93 in current assets for every $1 in current liabilities, suggesting improvement in liquidity compared to previous quarters. However, it is essential to monitor this ratio to ensure sustainable liquidity levels.

The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Crane NXT Co's quick ratio has also displayed variability, with the most recent ratio of 1.32 indicating that the company can cover its short-term obligations with its most liquid assets. This ratio has been relatively stable compared to the current ratio, indicating the company's ability to meet immediate cash needs.

The cash ratio, the most stringent liquidity ratio, focuses solely on cash and cash equivalents to cover current liabilities. Despite fluctuations, the cash ratio has generally remained within a stable range. The current cash ratio of 0.68 suggests that Crane NXT Co has $0.68 of cash and cash equivalents for every $1 of current liabilities, indicating some dependency on non-cash current assets to fulfill short-term obligations.

Overall, while Crane NXT Co has shown improvements in its current and quick ratios in the recent quarter, the company should continue to monitor its liquidity position closely to ensure it can meet its short-term financial commitments effectively.

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 53.08 26.86 30.01 78.63 48.95 104.38 91.19 93.23 83.36 94.45 96.81 104.49 104.10 99.53 100.91 104.65 87.07 92.11 85.23 91.95

Crane NXT Co's cash conversion cycle fluctuated over the past years, indicating varying efficiency in managing its working capital. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the trend, we observe that the cash conversion cycle was relatively high in some periods, such as in Mar 2020 (104.65 days) and Sep 2022 (104.38 days), suggesting potential challenges in managing cash flows efficiently. On the other hand, there were periods with shorter cycles, like in Sep 2023 (26.86 days), indicating a more effective management of working capital.

Overall, Crane NXT Co should aim to reduce its cash conversion cycle to improve liquidity and operational efficiency. Shortening the cycle can help in freeing up cash, reducing financing costs, and enhancing overall financial performance. Further analysis of the underlying components like inventory turnover, accounts receivable days, and accounts payable days can provide insights into specific areas for improvement.