Expeditors International of Washington, Inc. (EXPD)

Expeditors International of Washington, Inc.'s liquidity ratios show fluctuating trends over the years. The current ratio, a measure of the company's ability to cover its short-term obligations with its current assets, declined from 2.09 in 2020 to 1.77 in 2024, with the lowest point at 1.78 in 2021. The quick ratio, which provides a more stringent assessment of liquidity by excluding inventories from current assets, also decreased from 0.81 in 2020 to 0.30 in 2024, with a significant drop to 0.46 in 2021.

Furthermore, the cash ratio, representing the proportion of cash and cash equivalents to current liabilities, followed a similar pattern as the quick ratio, declining from 0.81 in 2020 to 0.30 in 2024. This reveals a potential concern regarding the company's immediate liquidity position, notably in 2024.

Overall, the declining trend in the current, quick, and cash ratios suggests that Expeditors International of Washington, Inc. may be facing challenges in maintaining sufficient liquid resources to meet its short-term obligations and emergencies, especially in the most recent reporting period. Further analysis of the company's cash management and working capital practices may be warranted to address these liquidity concerns.

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Additional liquidity measure

Expeditors International of Washington, Inc.'s cash conversion cycle has shown fluctuations over the years.

In 2020, the cash conversion cycle was at 14.19 days, indicating the company took approximately two weeks to convert its investments in raw materials, production, and sales back into cash.

By the end of 2021, the cycle extended to 25.10 days, signaling that the company took a longer time to convert its working capital into cash compared to the previous year.

However, in 2022, there was a significant improvement as the cash conversion cycle decreased to 6.31 days, suggesting a more efficient management of cash flow and working capital.

By the end of 2023, the cycle reached 0.00 days, showcasing an ideal scenario where the company was able to swiftly convert its investments into cash without any delay.

Similarly, in 2024, the cash conversion cycle remained at 0.00 days, reaffirming the company's continued efficiency in managing its cash conversion process.

Overall, the trend indicates fluctuations in the cash conversion cycle, with improvements in efficiency in certain years and achieving an ideal scenario of immediate conversion in others.