Corning Incorporated (GLW)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.62 | 1.67 | 1.44 | 1.59 | 2.12 |
| Quick ratio | 0.78 | 0.78 | 0.66 | 0.86 | 1.28 |
| Cash ratio | 0.36 | 0.41 | 0.32 | 0.45 | 0.71 |
Corning Incorporated's liquidity ratios show a mixed trend over the five-year period. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has fluctuated but generally remained above 1, indicating that Corning has been able to meet its short-term obligations. However, there has been a slight decrease in the current ratio from 2020 to 2024, suggesting a potential decline in liquidity.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown a decreasing trend over the years. This indicates that Corning's ability to meet its short-term obligations with its most liquid assets (excluding inventory) has weakened, which could be a concern for the company's short-term financial health.
The cash ratio, which is the most conservative liquidity ratio since it only considers cash and cash equivalents to cover current liabilities, has also shown a decreasing trend, reflecting a reduction in Corning's ability to cover its short-term obligations solely with its cash reserves.
Overall, the downward trend in both the quick ratio and the cash ratio suggests that Corning may face challenges in meeting its short-term financial obligations with its most liquid assets. It would be important for the company to closely monitor its liquidity position and take necessary steps to improve its short-term financial health.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 108.81 | 96.18 | 85.74 | 87.11 | 130.26 |
The cash conversion cycle of Corning Incorporated has shown a decreasing trend over the past five years. Starting from 130.26 days on December 31, 2020, it decreased to 87.11 days on December 31, 2021, further decreasing to 85.74 days on December 31, 2022. However, there was a slight increase to 96.18 days on December 31, 2023, and a further increase to 108.81 days on December 31, 2024.
Overall, the company has been able to manage its cash conversion cycle quite effectively, indicating efficient management of working capital and the ability to convert inventory and receivables into cash. The decreasing trend until 2022 suggests improved liquidity and operational efficiency. However, the slight uptick in 2023 and 2024 might be a point of concern, indicating potential challenges in managing working capital efficiently during those years.