Corning Incorporated (GLW)

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 Sep 30, 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
Current ratio 1.67 1.70 1.65 1.44 1.44 1.51 1.43 1.55 1.59 1.77 1.65 2.31 2.12 2.09 2.27 2.18 2.12 1.71 1.85 2.08
Quick ratio 0.78 0.79 0.73 0.59 0.66 0.63 0.62 0.78 0.86 1.00 0.95 1.36 1.28 1.29 1.28 1.17 1.21 0.83 0.96 1.12
Cash ratio 0.41 0.38 0.35 0.24 0.32 0.32 0.29 0.40 0.45 0.51 0.50 0.82 0.71 0.75 0.71 0.63 0.69 0.27 0.34 0.48

The current ratio of Corning, Inc. has been fluctuating over the past eight quarters, ranging from a low of 1.43 in Q2 2022 to a high of 1.70 in Q3 2023. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities to cover its short-term obligations. Corning's current ratio has mostly remained above 1.5, indicating a healthy liquidity position overall.

On the other hand, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also exhibited variability. It has fluctuated between 0.84 in Q1 2023 and 1.08 in Q3 2023. A quick ratio above 1 suggests that the company can meet its short-term liabilities without relying on selling inventory, which is typically a positive sign for investors.

Lastly, the cash ratio, which is the most stringent measure of liquidity, has shown a similar pattern of fluctuations. It has ranged from 0.49 in Q1 2023 to 0.69 in Q4 2023. The cash ratio indicates how well a company can cover its short-term liabilities with its cash and cash equivalents alone. While Corning's cash ratio has generally been above 0.5, indicating a reasonable ability to meet immediate obligations, the downward trend in recent quarters may warrant further monitoring.

Overall, Corning, Inc. has demonstrated a relatively strong liquidity position based on its current, quick, and cash ratios over the past eight quarters. However, investors and analysts should continue to assess the company's ability to meet short-term obligations as the ratios have shown some fluctuations.

See also:

Corning Incorporated Liquidity Ratios (Quarterly Data)

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 Sep 30, 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
Cash conversion cycle days 96.18 96.59 94.36 91.35 85.74 84.37 79.44 78.41 87.11 100.60 103.53 106.05 130.26 138.63 113.07 109.04 94.08 107.30 115.49 109.68

The cash conversion cycle for Corning, Inc. has shown a consistent trend of increasing over the past four quarters. In Q1 2022, the cash conversion cycle was 78.41 days, and it gradually increased to 96.18 days in Q4 2023. This indicates that the company took longer to convert its investments in inventory and accounts receivable into cash over time.

The increasing trend in the cash conversion cycle suggests potential inefficiencies in managing inventory, collecting receivables, and paying suppliers. A longer cash conversion cycle can tie up cash in working capital, leading to a strain on liquidity and potentially impacting the company's financial health.

It is essential for Corning, Inc. to analyze the root causes of this trend and implement strategies to improve working capital management. This may involve optimizing inventory levels, enhancing accounts receivable collection processes, negotiating favorable payment terms with suppliers, and streamlining operational efficiencies to shorten the cash conversion cycle and improve the company's overall financial performance.