Dana Inc (DAN)

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 1.58 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 1.71 1.64 1.63 1.63
Quick ratio 0.85 0.85 0.87 0.79 0.83 0.81 0.82 0.82 0.86 0.87 0.94 1.00 1.05 1.30 1.29 0.94 1.01 0.96 0.94 0.96
Cash ratio 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 0.29 0.21 0.15 0.19

Dana Inc's liquidity ratios, as reflected in the current ratio, quick ratio, and cash ratio, provide insight into the company's ability to meet its short-term financial obligations.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been relatively stable over the quarters, ranging from 1.47 to 1.59. A current ratio above 1 indicates that Dana Inc has more current assets than current liabilities, suggesting a good ability to meet its short-term obligations.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Dana Inc's quick ratio has been slightly lower compared to the current ratio, ranging from 0.87 to 0.96. A quick ratio below 1 may indicate that the company may have difficulty meeting its immediate obligations without relying on inventory sales.

The cash ratio, which measures the company's ability to pay off its current liabilities using only its cash and cash equivalents, has shown improvement over the quarters, ranging from 0.18 to 0.29. A higher cash ratio indicates a stronger ability to cover short-term liabilities with readily available cash.

Overall, Dana Inc's liquidity ratios suggest that the company generally maintains a healthy liquidity position, with a current ratio comfortably above 1, indicating sufficient current assets to cover current liabilities. The quick and cash ratios also show a positive trend, indicating an improved ability to meet short-term obligations with liquid assets. However, investors and stakeholders should continue to monitor these ratios to ensure that Dana Inc can sustain its liquidity position over time.

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 56.51 58.62 57.67 60.06 50.46 57.15 63.12 72.43 65.58 70.72 64.28 68.99 66.73 67.46 77.91 59.16 54.10 61.37 66.43 65.11

The cash conversion cycle of Dana Inc has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was reported at 54.07 days, which improved compared to the previous quarter's 57.35 days. This suggests that Dana Inc reduced the time it takes to convert its investments in inventory and other resources into cash.

Looking at the trend over the four quarters of 2023, the company's cash conversion cycle decreased gradually from Q1 to Q4, indicating a more efficient management of working capital. However, the cycle remains higher compared to Q4 of 2022, indicating that Dana Inc may still have room for further improvement in optimizing its cash flow processes.

Overall, Dana Inc's cash conversion cycle fluctuated throughout the examined period, with some quarters showing improvements while others showed increases. It is important for the company to continue monitoring and managing its working capital effectively to maintain a healthy cash conversion cycle and improve overall financial performance.