Fluor Corporation (FLR)

Fluor Corporation has generally demonstrated strong liquidity levels over the analyzed period based on its current ratio, which increased steadily from 1.38 as of March 31, 2020, to a peak of 1.77 as of June 30, 2024, before slightly declining to 1.69 by December 31, 2024. This indicates the company's ability to cover its short-term obligations with its current assets.

In terms of the quick ratio, Fluor Corporation also exhibited an improving trend from 0.51 on March 31, 2020, to 1.01 on September 30, 2024. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets.

The cash ratio, which provides the most stringent test of liquidity by only considering cash and cash equivalents, followed a similar trend to the quick ratio, reaching 1.01 by September 30, 2024. Overall, the consistently increasing trends in both the quick ratio and cash ratio suggest that Fluor Corporation has maintained healthy liquidity levels and is well-positioned to meet its short-term financial obligations.

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Additional liquidity measure

The cash conversion cycle refers to the time it takes for a company to convert its investments in raw materials and other resources into cash flows from sales. It is a measure of a company's operational efficiency and financial health.

Analyzing the cash conversion cycle of Fluor Corporation based on the provided data, we can see that there has been some variation in the cycle over the different quarters.

In the second quarter of 2020, the cash conversion cycle was 28.85 days, meaning it took Fluor approximately 28.85 days to convert its investments into cash. This high number suggests that there may have been delays in converting resources into cash flows from sales during that period.

The cycle decreased in the subsequent quarters, reaching as low as 5.69 days by the end of December 2020. This improvement indicates that Fluor was able to more efficiently manage its working capital and convert resources into cash flows at a faster rate.

However, the cycle increased again in the following quarters, reaching around 24-25 days in the first half of 2021 and remaining relatively stable at that level until the end of 2021. This could suggest some challenges in managing working capital efficiency during those periods.

Interestingly, there is a significant improvement in the cash conversion cycle in the following years, with the cycle dropping to 0 days from March 2022 to December 2024. This indicates that Fluor was able to streamline its operations and manage working capital effectively, resulting in a swift conversion of investments into cash.

Overall, the trend in Fluor Corporation's cash conversion cycle shows both fluctuations and periods of improvement. It is crucial for the company to continue monitoring and managing its working capital efficiency to sustain a healthy cash conversion cycle and financial performance.