Forward Air Corporation (FWRD)

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 1.46 1.25 1.28 1.56 1.80 1.74 1.89 1.73 1.72 1.83 1.75 1.47 1.43 1.50 1.68 1.68 1.72 1.54 1.41 1.73
Quick ratio 1.18 1.11 1.15 1.41 1.58 1.64 1.75 1.59 1.54 1.62 1.54 1.25 1.15 1.25 1.44 1.54 1.57 1.38 1.24 1.65
Cash ratio 0.51 0.10 0.11 0.19 0.27 0.26 0.28 0.33 0.23 0.33 0.30 0.14 0.23 0.27 0.55 0.54 0.47 0.25 0.11 0.36

Forward Air Corporation's liquidity ratios have shown fluctuating trends over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has varied between 1.25 and 1.80, with the latest value being 1.46 as of December 31, 2023. The company's current ratio has generally been above 1, indicating that it has sufficient current assets to meet its short-term obligations.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also exhibited variability, ranging from 1.11 to 1.75. As of December 31, 2023, the quick ratio stands at 1.18, suggesting that the company can meet its short-term obligations without relying on the sale of inventory.

The cash ratio, which is the most conservative liquidity measure, has shown significant fluctuations, with values ranging from 0.10 to 0.55. As of December 31, 2023, the cash ratio is 0.51, indicating that the company has a moderate level of cash to cover its immediate liabilities.

Overall, Forward Air Corporation has maintained reasonable liquidity levels based on the current, quick, and cash ratios. However, the fluctuating nature of these ratios suggests that the company's liquidity position may require monitoring and management to ensure it can meet its short-term obligations effectively.

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 2.58 11.03 11.24 9.85 7.91 12.02 18.97 10.08 14.29 33.64 36.61 36.13 38.59 35.39 31.77 32.16 37.29 34.22 33.37 31.08

The cash conversion cycle for Forward Air Corporation has shown some fluctuations over the past five quarters. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In the most recent quarter, ending on December 31, 2023, the cash conversion cycle for Forward Air Corporation was 2.58 days, indicating that the company is efficient in converting its resources into cash. This represents a significant improvement from the previous quarter's figure of 11.03 days.

Looking back at the trend over the past five quarters, we can observe that the cash conversion cycle has been somewhat volatile, with fluctuations in the range of 7.91 to 18.97 days. This suggests that the company may be experiencing challenges in managing its working capital efficiently.

Overall, the decreasing trend in the cash conversion cycle in the most recent quarter is a positive sign for Forward Air Corporation, as it indicates a more efficient use of resources and timely conversion into cash. However, it is important for the company to continue monitoring and managing its working capital effectively to maintain this positive trend and improve its overall financial performance.