Fluor Corporation (FLR)

Fluor Corporation's liquidity ratios have shown some fluctuations over the past five years.

The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has been relatively stable, ranging from 1.40 to 1.60. This indicates that the company has a sufficient level of current assets to meet its current liabilities.

The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to pay off its current liabilities without relying on the sale of inventory. Fluor Corporation's quick ratio has varied over the years, with a low of 1.10 in 2019 to a high of 1.60 in 2023. This ratio suggests that the company has a strong ability to cover its short-term obligations without relying on slow-moving inventory.

The cash ratio, which is the most conservative liquidity ratio, measures a company's ability to pay off its current liabilities with only its cash and cash equivalents. Fluor Corporation's cash ratio has shown some fluctuations, ranging from 0.83 to 1.24. While the company has generally maintained a healthy cash position, the ratio has dipped below 1 in some years, indicating a potential need to review its cash management practices.

Overall, Fluor Corporation's liquidity ratios suggest that the company has maintained a solid liquidity position over the years, with a strong ability to meet its short-term obligations using various levels of current assets, cash equivalents, and cash.

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Additional liquidity measure

The cash conversion cycle of Fluor Corporation has shown fluctuating trends over the past five years. In 2023, the company improved its cash conversion cycle significantly to -2.73 days, indicating that it takes less time for the company to convert its investments in inventory and other resources into cash. This may suggest more efficient management of working capital and better liquidity position.

In the previous year, 2022, the company had a positive cash conversion cycle of 1.73 days, implying that it took a short time for Fluor Corporation to convert its resources into cash. This is a good sign for the company's operations and cash flow management.

However, in 2021 and 2019, the company experienced negative cash conversion cycles of -6.90 days and -6.19 days respectively. This indicates that Fluor Corporation was able to collect cash from its customers before paying its suppliers and other obligations, leading to an efficient use of working capital.

Overall, Fluor Corporation's cash conversion cycle has shown variations over the years, but the recent improvement in 2023 suggests a positive trend towards optimizing its working capital and cash flow management. This metric is crucial for assessing the effectiveness of a company's operations in generating cash and managing liquidity.