Fluor Corporation (FLR)

Fluor Corporation's liquidity ratios show a consistent improvement over the years. The current ratio has been gradually increasing from 1.41 in 2020 to 1.69 in 2024, indicating the company's ability to cover its short-term obligations with its current assets.

However, the quick ratio has fluctuated slightly but remained relatively stable between 0.60 and 0.96 over the same period. This ratio measures the company's ability to meet immediate short-term liabilities without relying on inventory, indicating a moderate level of liquidity.

The cash ratio also follows a similar trend to the quick ratio, showing a consistent improvement from 0.60 in 2021 to 0.96 in 2024. This indicates that Fluor Corporation has a higher level of cash and cash equivalents relative to its current liabilities, enhancing its ability to meet short-term obligations without relying on inventory or receivables.

Overall, the liquidity ratios reflect a positive liquidity position for Fluor Corporation, with a strengthening ability to cover short-term liabilities with its current assets, cash, and cash equivalents.

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Additional liquidity measure

The cash conversion cycle is a crucial metric that reflects how efficiently a company manages its working capital. In the case of Fluor Corporation, we observe significant fluctuations in its cash conversion cycle over the years.

In 2020, Fluor Corporation had a relatively low cash conversion cycle of 5.67 days, indicating that the company was efficient in converting its investments in inventory into cash. However, in 2021, there was a notable increase to 25.95 days, which suggests a delay in collecting accounts receivable or managing inventory effectively.

The following years, 2022, 2023, and 2024, show a drastic improvement in Fluor Corporation's cash conversion cycle, with values dropping to almost zero. This could imply a streamlined working capital management process, leading to quicker conversion of inventory and receivables into cash.

Overall, the fluctuation in Fluor Corporation's cash conversion cycle highlights the company's evolving efficiency in managing working capital over the years. It is essential for investors and stakeholders to monitor this metric to assess the company's financial health and operational effectiveness.