Dover Corporation (DOV)

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 1.40 1.58 1.41 1.32 1.23 1.17 1.41 1.44 1.36 1.64 1.61 1.59 1.51 1.47 1.32 1.29 1.46 1.42 1.34 1.30
Quick ratio 0.76 0.84 0.76 0.69 0.68 0.62 0.80 0.77 0.77 1.04 1.02 1.00 0.95 0.92 0.85 0.83 0.92 0.88 0.82 0.78
Cash ratio 0.17 0.13 0.12 0.11 0.14 0.11 0.20 0.13 0.17 0.37 0.32 0.30 0.30 0.24 0.31 0.24 0.23 0.19 0.16 0.12

Dover Corp.'s liquidity ratios indicate the company's ability to meet its short-term obligations and manage its current liabilities effectively.

The current ratio has fluctuated over the past eight quarters, ranging from a low of 1.17 to a high of 1.58. Overall, the current ratio has generally been above 1, indicating that Dover Corp. has had sufficient current assets to cover its current liabilities. The decreasing trend from Q3 2023 to Q1 2023 may suggest a potential strain on short-term liquidity in the most recent quarter.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also shown variability, with values between 0.68 and 0.91. The decreasing trend from Q3 2023 to Q1 2023 may indicate potential challenges in meeting immediate obligations without relying on inventory liquidation.

The cash ratio, representing the most stringent measure of liquidity, has ranged from 0.16 to 0.27. This ratio has generally been below 0.3, implying that Dover Corp. relies more on liquid assets such as cash and equivalents rather than accounts receivable or inventory to cover its short-term liabilities.

Overall, Dover Corp.'s liquidity ratios demonstrate fluctuations over the past eight quarters, with some downward trends in the most recent period. It is essential for the company to monitor these ratios closely to ensure it maintains adequate liquidity levels to support its operations and financial obligations.

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 76.30 83.18 86.55 81.58 80.86 79.62 77.45 75.83 69.33 65.18 64.40 65.85 61.76 62.50 60.33 56.25 53.00 53.70 57.32 55.54

The cash conversion cycle of Dover Corp., a measure of the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, varied over the past eight quarters. The trend suggests that on average, it took Dover Corp. around 85 days to convert its investments into cash earnings from sales.

From the data, it is evident that the cash conversion cycle fluctuated within a range of 78.56 days to 91.91 days. Specifically, in the most recent quarter, Q4 2023, the company's cash conversion cycle was 80.14 days, showing a slight improvement from the prior quarters. The shortest cash conversion cycle observed in the last eight quarters was in Q1 2022, at 78.56 days, indicating efficient management of its resources and operations during that period.

Overall, Dover Corp.'s cash conversion cycle has demonstrated some variability over the past two years, but generally trends within a relatively stable range. Analyzing the drivers behind these fluctuations may provide insights into the company's working capital management efficiency and overall operational performance.