Flowserve Corporation (FLS)

Liquidity ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Current ratio	1.88	2.02	2.00	1.92	1.97	2.04	2.09	2.07	2.11	1.69	2.28	2.26	2.54	2.57	2.23	2.19	2.24	2.29	2.28	2.17
Quick ratio	1.00	1.03	1.01	0.99	1.06	1.03	1.09	1.14	1.26	1.14	1.27	1.28	1.62	1.53	1.21	1.23	1.31	1.28	1.33	1.27
Cash ratio	0.38	0.37	0.33	0.31	0.35	0.32	0.42	0.50	0.58	0.76	0.59	0.61	0.96	0.84	0.52	0.56	0.60	0.52	0.56	0.57

Flowserve Corp.'s liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been consistently above 1, ranging from 1.88 to 2.09 over the past eight quarters, showing that the company has more than enough current assets to cover its current liabilities. This suggests a strong liquidity position.

The quick ratio, which excludes inventory from current assets, has also been healthy, ranging from 1.26 to 1.44. This indicates that Flowserve Corp. can meet its short-term obligations without relying on selling inventory. The stability of this ratio reflects efficient management of current assets.

The cash ratio, while on the lower side compared to the current and quick ratios, has shown some fluctuation, with the latest quarter at 0.65. This ratio indicates Flowserve Corp.'s ability to cover its current liabilities with its cash and cash equivalents alone. The decreasing trend may suggest a need for monitoring and improvement in cash management practices to ensure sufficient liquidity.

Overall, based on these liquidity ratios, Flowserve Corp. appears to have a solid liquidity position, with a comfortable ability to meet its short-term obligations.

Additional liquidity measure

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash conversion cycle	days	106.63	117.19	123.82	128.68	125.02	121.05	112.67	110.39	109.96	108.95	106.04	103.86	98.90	102.10	98.11	94.70	95.94	105.23	106.87	104.83

The cash conversion cycle for Flowserve Corp. has shown fluctuations over the past eight quarters. In Q1 2022, the cash conversion cycle was at its lowest at 120.44 days, indicating that Flowserve was efficient in converting its investments in inventory and receivables into cash during that period. However, there was an increase in the cash conversion cycle in subsequent quarters, reaching a peak of 140.77 days in Q1 2023.

Overall, the trend indicates that Flowserve might be facing challenges in managing its inventory and receivables efficiently, resulting in a longer cash conversion cycle. This can potentially lead to cash flow constraints and impact the company's working capital management. To improve financial performance and liquidity, Flowserve may need to focus on streamlining its operations, optimizing inventory levels, and enhancing its accounts receivable collection processes.