Greenbrier Companies Inc (GBX)

Liquidity ratios

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 Aug 31, 2019 May 31, 2019
Current ratio 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 1.67 1.91
Quick ratio 0.47 0.33 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 0.55 0.72
Cash ratio 0.43 0.32 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 0.55 0.72

Greenbrier Companies Inc's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has generally been above 1, indicating a healthy liquidity position. However, the ratio saw significant variations, ranging from 1.09 to 2.94. This variability suggests that Greenbrier's current assets may not always be sufficient to cover its current liabilities adequately.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown fluctuations. The ratios have ranged from 0.30 to 1.82, with some periods indicating a weaker ability to meet short-term obligations without relying on selling inventory. This could potentially indicate inefficiencies in managing the company's current assets.

The cash ratio, which is the most conservative liquidity measure, focusing solely on cash and cash equivalents to cover current liabilities, has also exhibited fluctuations. The ratios have ranged from 0.27 to 1.80, highlighting the variability in Greenbrier's cash position over the quarters.

Overall, while Greenbrier Companies Inc generally maintains a current ratio above 1, indicating a basic level of liquidity, the company's quick ratio and cash ratio show more variability, suggesting potential challenges in managing cash and more stringent liquidity positions. Monitoring these ratios closely will be essential to ensure the company's ability to meet its short-term obligations efficiently.

Additional liquidity measure

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 Aug 31, 2019 May 31, 2019
Cash conversion cycle days 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 90.96 87.51

The cash conversion cycle of Greenbrier Companies Inc has shown fluctuations over the periods in question. The cycle measures the time it takes for the company to convert its investment in inventory into cash from sales. A lower cash conversion cycle indicates a more efficient management of working capital.

Based on the data provided:
- The cash conversion cycle ranged from 80.43 days to 161.49 days over the past two years, highlighting some significant volatility in the company's working capital management.
- The shorter cycles on individual dates, such as 80.43 days and 84.25 days, may indicate efficient inventory management and quicker cash collection processes.
- Longer cycles, such as 149.43 days and 161.49 days, suggest potential issues with inventory turnover and collection periods, which could tie up resources and impact cash flows.

Overall, Greenbrier Companies Inc should focus on optimizing its inventory management, accounts receivable collection, and accounts payable processes to reduce the cash conversion cycle and improve overall liquidity and operational efficiency.