Greenbrier Companies Inc (GBX)
Liquidity ratios
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.15 | 1.88 | 1.88 | 1.25 | 1.40 | 1.21 | 1.27 | 1.21 | 1.37 | 1.51 | 1.63 | 1.09 | 1.48 | 1.65 | 1.63 | 1.71 | 2.94 | 1.56 | 1.64 | 1.90 |
| Quick ratio | 0.34 | 0.56 | 0.52 | 0.36 | 0.45 | 0.37 | 0.39 | 0.30 | 0.57 | 0.75 | 0.85 | 0.57 | 0.84 | 0.92 | 0.91 | 1.02 | 1.82 | 0.81 | 0.32 | 0.49 |
| Cash ratio | 0.29 | 0.52 | 0.49 | 0.35 | 0.40 | 0.34 | 0.37 | 0.27 | 0.53 | 0.61 | 0.73 | 0.47 | 0.72 | 0.83 | 0.82 | 1.02 | 1.80 | 0.81 | 0.32 | 0.49 |
Greenbrier Companies Inc's liquidity ratios have shown some fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has ranged between 1.09 and 2.94. While the ratio has generally remained above 1, indicating sufficient liquidity, there have been periods of lower ratios which may raise concerns about short-term liquidity levels.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also fluctuated, ranging from 0.30 to 1.82. This ratio provides a more conservative view of the company's ability to meet short-term obligations immediately. Greenbrier Companies Inc's quick ratio has shown variability, with some periods demonstrating stronger ability to cover short-term liabilities than others.
Lastly, the cash ratio, which indicates the company's ability to cover immediate liabilities with cash and cash equivalents, has ranged between 0.27 and 1.80. A higher cash ratio is generally seen as a positive sign of liquidity, as it signifies a greater ability to meet short-term obligations with the most liquid assets.
Overall, Greenbrier Companies Inc's liquidity ratios show some variability, with periods of stronger and weaker liquidity levels. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.
Additional liquidity measure
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 98.87 | 100.43 | 95.54 | 93.28 | 89.72 | 97.15 | 104.75 | 114.74 | 116.26 | 139.43 | 149.43 | 159.52 | 161.49 | 142.77 | 113.18 | 84.25 | 80.43 | 93.02 | 94.29 | 95.24 |
The Cash Conversion Cycle of Greenbrier Companies Inc has shown some fluctuations over the past few periods. The company's cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
Analyzing the data, we can see that the company's cash conversion cycle has ranged from a low of 80.43 days to a high of 161.49 days over the last few years. A lower cash conversion cycle is generally more favorable, as it indicates that the company is efficiently managing its cash flows and operations.
In the most recent period, the cash conversion cycle was 98.87 days. This suggests that, on average, it takes Greenbrier Companies Inc close to 99 days to convert its investments in inventory and other resources into cash from sales.
It's essential for the company to monitor and manage its cash conversion cycle effectively to ensure optimal working capital management. A shorter cash conversion cycle can lead to improved liquidity and profitability for the company.