Griffon Corporation (GFF)

Liquidity ratios

	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	Mar 31, 2020	Dec 31, 2019
Current ratio	2.66	2.50	2.78	2.46	2.73	2.96	3.18	3.03	2.87	2.26	2.83	2.64	2.57	2.63	2.60	2.56	2.50	2.27	2.59	2.43
Quick ratio	1.22	1.17	1.31	1.05	1.16	1.34	1.47	1.21	1.14	0.97	1.09	0.98	1.05	1.25	1.26	1.24	1.29	1.00	1.05	0.88
Cash ratio	0.33	0.35	0.34	0.28	0.29	0.40	0.46	0.31	0.28	0.24	0.21	0.32	0.50	0.48	0.39	0.53	0.50	0.17	0.19	0.17

Griffon Corporation's liquidity ratios have shown fluctuations over the past several quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged from a low of 2.26 to a high of 3.18. Overall, the current ratio has generally been above 2, indicating a healthy liquidity position.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also exhibited variability, ranging from 0.88 to 1.47. While the quick ratio has been above 1 in most quarters, suggesting the company can meet its short-term liabilities without relying heavily on inventory sales, there have been occasional decreases below the ideal threshold.

The cash ratio, which is the most conservative liquidity measure as it focuses solely on cash and cash equivalents, has fluctuated significantly for Griffon Corporation. The ratios have varied from 0.17 to 0.53, indicating that the company may have a varying ability to cover its current liabilities with its available cash on hand.

Overall, Griffon Corporation's liquidity ratios show a mixed performance, with the company generally maintaining a satisfactory level of liquidity but experiencing some fluctuations in its ability to cover short-term obligations with cash and near-cash assets. It is essential for the company to continue monitoring and managing its liquidity position to ensure stability and financial health.

Additional liquidity measure

		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	Mar 31, 2020	Dec 31, 2019
Cash conversion cycle	days	92.73	89.20	97.21	87.37	98.22	95.46	97.67	102.63	103.92	144.11	156.41	105.25	84.95	103.07	104.55	91.31	85.76	89.39	94.18	86.80

The cash conversion cycle of Griffon Corporation has shown fluctuations over the historical periods analyzed. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle indicates that the company takes more time to recoup its investments, which can impact liquidity and working capital management.

Analyzing the trend, we observed that the cash conversion cycle has ranged from a low of 84.95 days to a high of 156.41 days over the periods reported. In general, a lower cash conversion cycle is desirable as it suggests that the company is able to more efficiently manage its working capital and convert its resources into cash faster.

The data reveals that there have been fluctuations in the cash conversion cycle of Griffon Corporation, with some periods showing improvements in efficiency and others showing increases in the time taken to convert investments into cash. It is important for the company to closely monitor and manage its cash conversion cycle to ensure optimal working capital management and liquidity levels.