CoreCivic Inc (CXW)

The liquidity ratios of CoreCivic Inc over the past five years exhibit fluctuating trends. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has ranged from a low of 1.14 in 2022 to a high of 2.29 in 2020. The increasing trend from 2019 to 2020 indicates a stronger liquidity position, but the decrease in 2022 suggests a potential difficulty in meeting short-term obligations compared to previous years.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, has shown a similar pattern of fluctuations. The company's ability to cover its short-term liabilities with more liquid assets like cash or accounts receivable ranged from a low of 1.10 in 2022 to a high of 1.79 in 2021. The quick ratio trend generally follows that of the current ratio, indicating a consistent level of liquidity relative to current assets.

In terms of the cash ratio, which represents the proportion of current liabilities that can be covered by cash alone, CoreCivic Inc has shown varying levels of liquidity. The cash ratio has fluctuated from 0.35 in 2019 to a peak of 0.96 in 2021, with a decrease to 0.50 in 2023. This indicates that the company's ability to cover immediate obligations solely with cash has been inconsistent over the years.

Overall, while CoreCivic Inc has experienced fluctuations in its liquidity ratios, it is essential for the company to maintain a balance between current assets and current liabilities to ensure its ongoing ability to meet short-term obligations.

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Additional liquidity measure

CoreCivic Inc's cash conversion cycle has shown a fluctuating trend over the past five years. The company's cash conversion cycle measures the time it takes for CoreCivic to convert its investments in inventory and other resources into cash inflows from sales.

In 2023, the cash conversion cycle increased to 60.08 days from 61.80 days in 2022. This indicates that CoreCivic took slightly longer to convert its investments into cash during the year. However, compared to 2021 and 2020, the cash conversion cycle was higher in 2023.

In 2021, the cash conversion cycle was 55.42 days, showing a decrease from 2022. This suggests that CoreCivic was able to more efficiently convert its investments into cash during that year.

In 2020 and 2019, the cash conversion cycle was relatively stable at around 51-52 days, indicating consistent performance in converting investments into cash during those years.

Overall, CoreCivic's cash conversion cycle has exhibited some variability, but the company's ability to efficiently manage its working capital and convert investments into cash has shown some improvements over the years. It is important for CoreCivic to continue monitoring and managing its cash conversion cycle effectively to ensure optimal use of resources and liquidity.