Everus Construction Group Inc (ECG)

Everus Construction Group Inc's liquidity ratios for the fiscal years are as follows:
1. Current Ratio:
- Dec 31, 2023: 1.69
- Dec 31, 2022: 1.66
- Dec 31, 2021: Not provided

The current ratio measures the company's ability to cover its short-term obligations with its current assets. Everus Construction Group Inc's current ratio has increased slightly from 1.66 in 2022 to 1.69 in 2023, indicating improvement in its short-term liquidity position. A current ratio above 1 suggests the company has more current assets than current liabilities.

2. Quick Ratio:
- Dec 31, 2023: 0.00
- Dec 31, 2022: 0.00
- Dec 31, 2021: Not provided

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of a company's liquidity by excluding inventory from current assets. The lack of data for the quick ratio suggests that the company may not have sufficient liquid assets, excluding inventory, to cover its current liabilities. A quick ratio below 1 might indicate potential liquidity concerns.

3. Cash Ratio:
- Dec 31, 2023: 0.00
- Dec 31, 2022: 0.00
- Dec 31, 2021: Not provided

The cash ratio is the most conservative measure of liquidity, focusing solely on the company's cash and cash equivalents to cover current liabilities. Everus Construction Group Inc's cash ratio being 0.00 indicates that the company may not have enough cash on hand to meet its short-term obligations, posing a potential liquidity risk.

In summary, while the current ratio of Everus Construction Group Inc has shown a slight improvement over the past year, the lack of data for the quick ratio and cash ratio raises concerns about the company's ability to meet its short-term financial commitments. Monitoring these ratios closely and potentially increasing liquidity reserves could help mitigate liquidity risks in the future.

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Additional liquidity measure

Everus Construction Group Inc's cash conversion cycle, a measure of how quickly the company can convert its investments in inventory and receivables into cash inflows, has shown an increasing trend over the past three years.

In 2021, the company had a cash conversion cycle of 0 days, indicating that it was able to convert its investments into cash almost instantly. However, by the end of 2023, this cycle had increased to 6.16 days, suggesting that the company now takes more days to convert its investments into cash.

This increase in the cash conversion cycle can imply that Everus Construction Group Inc may be facing challenges in managing its inventory, collecting receivables, or both. It may indicate inefficiencies in the company's working capital management, which could potentially lead to cash flow issues or increased financing costs.

It would be advisable for Everus Construction Group Inc to closely monitor its cash conversion cycle and identify the underlying reasons for the increasing trend in order to implement appropriate strategies to improve efficiency and maintain healthy cash flows.