Forward Air Corporation (FWRD)
Liquidity ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.23 | 1.23 | 1.21 | 1.33 | 1.28 | 1.46 | 1.25 | 1.28 | 1.56 | 1.80 | 1.74 | 1.89 | 1.73 | 1.72 | 1.83 | 1.75 | 1.47 | 1.45 | 1.50 | 1.68 |
| Quick ratio | 0.27 | 0.27 | 0.30 | 0.25 | 0.39 | 0.68 | 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 |
| Cash ratio | 0.27 | 0.27 | 0.30 | 0.25 | 0.39 | 0.68 | 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 |
Forward Air Corporation's current ratio has shown fluctuations over the years, ranging from 1.21 to 1.89. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, which suggests good liquidity. However, the current ratio has decreased slightly from 1.89 in June 2022 to 1.23 in December 2024, which may indicate a potential decline in the company's ability to cover its short-term obligations.
The quick ratio, which excludes inventory from current assets, also demonstrates variability over the periods analyzed. The quick ratio fluctuates between 0.10 and 0.68, indicating a wider range of liquidity challenges compared to the current ratio. The quick ratio hit its lowest point in September 2023 but improved significantly by the end of December 2023, before showing some inconsistency in subsequent periods.
Additionally, the cash ratio mirrors the quick ratio closely, also displaying fluctuations between 0.10 and 0.68. The cash ratio provides insight into the company's ability to meet its short-term liabilities using only its most liquid assets, offering a more conservative view of liquidity compared to the current and quick ratios.
Overall, the liquidity ratios of Forward Air Corporation suggest some variability in the company's ability to cover its short-term obligations, with periodic improvements and declines. Monitoring these ratios over time can help assess the company's liquidity position and its ability to navigate short-term financial challenges.
Additional liquidity measure
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.26 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 7.13 | 5.63 | 3.88 |
The cash conversion cycle for Forward Air Corporation provides insight into its efficiency in managing cash flow related to its operations. In June 2020, the company had a relatively short cash conversion cycle of 3.88 days, indicating that it was able to quickly convert its investments in inventory and receivables into cash.
However, by September 2020, the cycle extended to 5.63 days, suggesting a slight delay in converting investments into cash. By December 2020, the cycle further extended to 7.13 days, indicating a potential lag in the company's cash conversion process.
Interestingly, in the following quarters of March 2021 to June 2022, the cash conversion cycle dropped to 0.00 days, signaling a significant improvement in the efficiency of cash conversion during these periods.
From September 2022 onwards, the cycle remained at 0.00 days until a slight increase to 0.26 days by September 30, 2024. This indicates that the company effectively managed its cash flow during this period.
Overall, analyzing the cash conversion cycle provides valuable insights into Forward Air Corporation's ability to efficiently manage its working capital and convert investments into cash effectively.