Fortune Brands Innovations Inc. (FBIN)
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 | 1.25 | 1.32 | 1.34 | 2.04 | 1.70 | 1.80 | 1.49 | 1.63 | 1.59 | 1.47 | 2.13 | 2.18 | 1.39 | 1.78 | 1.87 | 1.96 | 1.64 | 1.88 | 2.05 | 1.54 |
| Quick ratio | 0.56 | 0.59 | 0.61 | 0.92 | 0.75 | 0.87 | 0.79 | 0.43 | 0.81 | 0.63 | 0.94 | 1.03 | 0.69 | 0.90 | 0.96 | 0.99 | 0.86 | 1.08 | 1.11 | 0.83 |
| Cash ratio | 0.24 | 0.23 | 0.23 | 0.34 | 0.31 | 0.38 | 0.42 | 0.43 | 0.47 | 0.17 | 0.25 | 0.28 | 0.24 | 0.30 | 0.34 | 0.30 | 0.31 | 0.41 | 0.42 | 0.29 |
Fortune Brands Innovations Inc.'s current ratio has shown fluctuations over the past few years, ranging from a low of 1.25 to a high of 2.18. This ratio indicates the company's ability to cover short-term liabilities with its current assets. Generally, a current ratio above 1 suggests a strong liquidity position.
On the other hand, the quick ratio, which excludes inventory from current assets, also varied for Fortune Brands Innovations Inc. over the same period, with values between 0.43 and 1.11. The quick ratio is a more stringent measure of liquidity compared to the current ratio as it provides insight into a company's ability to meet short-term obligations with its most liquid assets.
Furthermore, the cash ratio, which only considers cash and cash equivalents in relation to current liabilities, fluctuated between 0.17 and 0.47. This ratio gives a clear picture of the company's ability to pay off its immediate liabilities with its available cash resources.
Overall, the analysis of these liquidity ratios for Fortune Brands Innovations Inc. suggests that while the company has maintained a generally acceptable liquidity position, there have been some fluctuations that may be worth further investigation to ensure continued financial stability and ability to meet short-term obligations.
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 | 95.70 | 86.60 | 84.35 | 88.70 | 79.84 | 81.97 | 101.54 | 61.19 | 118.78 | 177.21 | 161.68 | 152.94 | 109.54 | 109.37 | 91.41 | 88.32 | 66.98 | 65.92 | 68.71 | 69.31 |
The cash conversion cycle for Fortune Brands Innovations Inc. provides insights into how efficiently the company manages its working capital.
From March 31, 2020, to December 31, 2024, the trend in the cash conversion cycle shows fluctuations. The cycle started at 69.31 days in March 2020, decreased to 61.19 days by March 2023, increased thereafter, reaching a peak of 177.21 days in September 2022, and then decreased to 95.70 days by December 2024.
A lower cash conversion cycle generally indicates that the company is efficiently managing its receivables, inventory, and payables, resulting in quicker conversion of resources into cash. Conversely, a higher cash conversion cycle suggests that the company may be facing challenges in efficiently managing its working capital, potentially leading to cash flow issues.
In the case of Fortune Brands Innovations Inc., it is essential for stakeholders to monitor the fluctuations in the cash conversion cycle to understand the company's working capital management efficiency and its impact on the overall financial health of the business. Further analysis involving industry benchmarks and historical trends could provide a more in-depth understanding of the company's performance in this aspect.