Dover Corporation (DOV)
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 | 2.04 | 1.57 | 1.53 | 1.31 | 1.36 | 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 |
| Quick ratio | 0.84 | 0.16 | 0.15 | 0.31 | 0.16 | 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 |
| Cash ratio | 0.84 | 0.16 | 0.15 | 0.31 | 0.16 | 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 |
Dover Corporation's liquidity ratios have shown fluctuating trends over the reported periods. The current ratio, which measures the company's ability to cover short-term obligations with current assets, increased from 1.29 as of March 31, 2020, to a peak of 2.04 as of December 31, 2024. However, it decreased slightly to 1.36 as of December 31, 2023, but rebounded in the following periods.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, was relatively low throughout the periods, with a range from 0.11 to 0.84. This ratio reflects Dover Corporation's ability to meet short-term obligations without relying on inventory liquidation. Notably, there were fluctuations in the quick ratio over time, indicating changes in the company's ability to meet immediate liabilities with its most liquid assets.
The cash ratio, which indicates the company's ability to cover current liabilities with cash and cash equivalents, also exhibited variability, ranging from 0.11 to 0.84. This ratio suggests the proportion of current liabilities Dover Corporation could settle immediately with its available cash reserves. The increase in the cash ratio to 0.84 as of December 31, 2024, reflects a significant improvement in the company's cash position compared to previous periods.
Overall, while the current ratio generally improved over the reported periods, the quick ratio and cash ratio showed fluctuations. These ratios collectively indicate that Dover Corporation managed its short-term liquidity position reasonably well, with a varying ability to meet immediate obligations using liquid assets and cash reserves.
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 | 82.28 | 84.99 | 84.45 | 85.08 | 83.55 | 86.40 | 93.83 | 93.82 | 91.62 | 96.24 | 96.65 | 94.65 | 88.05 | 80.31 | 77.18 | 76.23 | 72.47 | 72.79 | 75.78 | 69.76 |
The cash conversion cycle of Dover Corporation has shown fluctuation over the period analyzed. The cycle measures the time it takes for the company to convert its investment in inventory and other resources into cash inflows from sales.
From March 31, 2020, to June 30, 2020, the cash conversion cycle increased from 69.76 days to 75.78 days, indicating a longer period for the company to convert its resources into cash. This trend continued with slight variations throughout 2020 and 2021, reaching a peak of 96.65 days on June 30, 2022.
From September 30, 2022, to December 31, 2024, the cash conversion cycle gradually decreased to 82.28 days by December 31, 2024. This reduction suggests potential improvements in managing inventory, receivables, and payables more efficiently, leading to a shorter cycle and quicker cash conversion for the company.
Overall, fluctuations in Dover Corporation's cash conversion cycle indicate changes in its operational efficiency and working capital management over the analyzed period. A decreasing cycle can be a positive sign of improved liquidity and financial performance, while an increasing cycle may raise concerns about the company's ability to convert its assets into cash effectively.