Dana Inc (DAN)
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 | 1.45 | 1.49 | 1.48 | 1.60 | 1.58 | 1.58 | 1.59 | 1.47 | 1.54 | 1.49 | 1.52 | 1.52 | 1.65 | 1.66 | 1.66 | 1.65 | 1.69 | 1.96 | 2.21 | 1.60 |
| Quick ratio | 0.19 | 0.15 | 0.16 | 0.14 | 0.20 | 0.16 | 0.18 | 0.14 | 0.18 | 0.14 | 0.13 | 0.11 | 0.13 | 0.11 | 0.20 | 0.23 | 0.30 | 0.53 | 0.52 | 0.31 |
| Cash ratio | 0.19 | 0.15 | 0.16 | 0.14 | 0.20 | 0.16 | 0.18 | 0.14 | 0.18 | 0.14 | 0.13 | 0.11 | 0.13 | 0.11 | 0.20 | 0.23 | 0.30 | 0.53 | 0.52 | 0.31 |
Dana Inc's current ratio has shown some fluctuations over the past few years, ranging between 1.45 and 2.21. The company's current assets have generally been sufficient to cover its current liabilities, with the ratio staying within a range of 1.45 to 2.21.
However, the quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown more variability. It has fluctuated between 0.11 and 0.53, indicating that Dana Inc may have had periods where it struggled to cover its current liabilities using only its most liquid assets.
The cash ratio, which is a more stringent measure of liquidity as it only considers cash and cash equivalents, has also exhibited variability, ranging from 0.11 to 0.53. This suggests that Dana Inc's ability to pay off its current liabilities using only its cash reserves has fluctuated over the years.
Overall, while Dana Inc's current ratio indicates a generally healthy ability to meet its short-term obligations with its current assets, the fluctuating quick and cash ratios suggest potential periods of liquidity challenges that the company may have faced. Monitoring these ratios closely can help assess the company's ongoing liquidity position.
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 | 59.88 | 65.47 | 59.92 | 60.88 | 63.36 | 64.46 | 65.82 | 66.03 | 62.52 | 63.85 | 65.90 | 71.05 | 70.41 | 71.79 | 68.54 | 67.86 | 64.67 | 62.46 | 63.11 | 60.27 |
The cash conversion cycle of Dana Inc has shown some fluctuations over the years based on the provided data. The cash conversion cycle is a measure of the time it takes for a company to convert its investment in inventory into cash collected from customers.
From March 31, 2020, to December 31, 2024, Dana Inc's cash conversion cycle varied, ranging from a low of 59.88 days on December 31, 2024, to a high of 71.79 days on September 30, 2021.
Generally, a lower cash conversion cycle is preferred as it indicates that the company is able to efficiently manage its working capital and convert inventory into cash. Conversely, a higher cash conversion cycle suggests that the company may be facing challenges in transforming its resources into cash quickly.
Analyzing the trend of Dana Inc's cash conversion cycle, it seems to have improved in the most recent quarters, potentially indicating better inventory management or more efficient collection of receivables. Monitoring the cash conversion cycle over time can provide insights into the company's operational efficiency and financial performance.