Frontier Communications Parent Inc (FYBR)
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 | 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 | Dec 31, 2018 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.22 | 1.36 | 0.85 | 1.10 | 1.13 | 1.56 | 1.97 | 1.57 | 1.85 | 1.17 | 0.40 | 0.37 | 0.37 | 0.41 | 0.17 | 1.08 | 1.10 | 1.14 | 0.55 | 0.52 |
| Quick ratio | 1.16 | 1.30 | 0.81 | 1.07 | 1.10 | 1.51 | 1.91 | 1.52 | 1.78 | 0.71 | 0.37 | 0.33 | 0.34 | 0.38 | 0.08 | 0.52 | 0.52 | 0.44 | 0.46 | 0.45 |
| Cash ratio | 0.97 | 1.08 | 0.60 | 0.88 | 0.90 | 1.29 | 1.67 | 1.28 | 1.47 | 0.71 | 0.29 | 0.26 | 0.25 | 0.29 | 0.05 | 0.27 | 0.25 | 0.12 | 0.06 | 0.14 |
Frontier Communications Parent Inc's liquidity ratios indicate fluctuations over the reporting periods. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has ranged from 0.85 to 1.97. While the current ratio improved significantly from Q4 2020 to Q2 2022, it declined in the more recent periods, potentially signaling a strain on short-term liquidity.
The quick ratio, a more stringent measure that excludes inventory from current assets, also shows variability, ranging from 0.08 to 1.91. This ratio generally follows the trend of the current ratio but with more pronounced fluctuations, suggesting potential inventory management issues affecting liquidity.
The cash ratio, representing the most conservative measure of liquidity, fluctuates from 0.05 to 1.67. This ratio indicates the company's ability to cover short-term liabilities with its most liquid assets, with the data showing some volatility in this aspect of liquidity.
Overall, Frontier Communications Parent Inc's liquidity ratios have shown mixed performance, with some periods demonstrating stronger liquidity positions than others. It would be important to monitor trends over time and investigate the underlying factors driving these fluctuations to ensure the company maintains adequate liquidity for its operations and financial 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 | 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 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -46.35 | -14.52 | -37.95 | -64.25 | -70.20 | -571.19 | -470.69 | -175.92 | -45.00 | 0.00 | -30.31 | -34.01 | 31.46 | 32.44 | -4.07 | -11.38 | 11.83 | 13.51 | -13.44 | -10.77 |
The cash conversion cycle of Frontier Communications Parent Inc has fluctuated significantly over the past few years. The company has shown a negative cash conversion cycle in most periods, indicating that it takes less time to convert investments in inventory into cash from sales and then into accounts receivable collections, compared to the time it takes to pay off its accounts payable.
In the latest period of December 2023, the cash conversion cycle was -46.35 days, implying that the company was able to efficiently manage its working capital and generate cash from its operational activities. This improvement from the previous quarters of -14.52 days and -37.95 days suggests that the company has been optimizing its inventory management and collection practices.
However, the company faced challenges in managing its cash conversion cycle in the same period of September 2022, where the cycle was recorded at -571.19 days. This anomaly can be attributed to unique circumstances or temporary factors affecting the company's operations or financial management during that period.
Overall, the cash conversion cycle has shown variability over the years, with some periods displaying better efficiency in working capital management than others. It is essential for the company to maintain a healthy cash conversion cycle to ensure optimal cash flow and operational sustainability.