Everus Construction Group Inc (ECG)

Based on the liquidity ratios of Everus Construction Group Inc over the past four years, we can observe the following trends:

1. Current Ratio:
- The company's current ratio has shown a consistent improvement from 1.66 in 2022 to 1.69 in 2023, and further to 1.79 in 2024. This indicates an increasing ability to cover its short-term liabilities with its current assets. A current ratio above 1 suggests the company has more current assets than current liabilities, which is generally considered favorable.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, shows a significant improvement from 0.00 in 2022 and 2023 to 0.17 in 2024. This suggests that the company has started to hold some liquid assets that can quickly cover its immediate liabilities without relying on inventory, which is positive for short-term financial stability.

3. Cash Ratio:
- The cash ratio has also improved from 0.00 in 2022 and 2023 to 0.17 in 2024. This ratio indicates the proportion of the company's current liabilities that could be covered by its cash and cash equivalents alone. The increase in the cash ratio reflects a stronger position in terms of cash reserves to meet short-term obligations.

Overall, the improving trends in all three liquidity ratios suggest that Everus Construction Group Inc has been effectively managing its liquidity position, increasing its ability to meet short-term financial obligations and potentially indicating improved financial health and stability during the analyzed period.

---

Additional liquidity measure

The cash conversion cycle of Everus Construction Group Inc has shown a consistent improvement over the years from 2021 to 2024. In 2021, the company achieved a cash conversion cycle of 0.00 days, indicating an efficient management of cash flow, with money being received before payment obligations are due. Subsequently, in 2022, there was a slight increase to 5.55 days, suggesting a moderate extension in the time taken to convert inventory and receivables into cash.

By the end of 2023, the cash conversion cycle further increased to 6.16 days, indicating a longer period of time required for the company to convert its investments in raw materials and accounts receivable into cash receipts. This may suggest a need for the company to strategize and manage its working capital more effectively to speed up the cash conversion process.

In 2024, the cash conversion cycle continued to lengthen slightly to 6.36 days, signifying a marginal slowdown in the conversion of assets into cash. It is important for Everus Construction Group Inc to closely monitor and analyze its cash conversion cycle to ensure optimal efficiency in managing its working capital and cash flow for sustainable growth and financial stability.