Corning Incorporated (GLW)

Liquidity ratios

Dec 31, 2024 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
Current ratio 1.62 1.66 1.57 1.67 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
Quick ratio 0.78 0.78 0.69 0.72 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
Cash ratio 0.36 0.35 0.31 0.33 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

The liquidity ratios of Corning Incorporated, namely the current ratio, quick ratio, and cash ratio, indicate the company's ability to meet its short-term obligations.

- The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has shown fluctuations over the years. It generally stayed above 1, indicating a healthy liquidity position. However, there was a decreasing trend from 2021 to 2024, possibly indicating a need for closer monitoring of working capital management.

- The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also exhibited a declining trend over the years. While the quick ratio generally stayed above 1, signaling a moderate level of liquidity, the decreasing trend suggests a potential decrease in the company's ability to quickly cover its short-term obligations without relying on inventory.

- The cash ratio, which provides the most conservative measure of liquidity by focusing solely on cash and cash equivalents, also showed a decline over the years. The declining trend may raise concerns about the company's ability to cover its short-term obligations with its readily available cash resources, although the ratios remained relatively stable above 0.2.

Overall, the liquidity ratios of Corning Incorporated indicate a generally healthy liquidity position, but the declining trends in these ratios over the years suggest a need for careful monitoring and potential adjustments to maintain sufficient liquidity levels to meet short-term obligations effectively.

See also:

Corning Incorporated Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Dec 31, 2024 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
Cash conversion cycle days 108.81 109.47 102.68 101.12 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

The cash conversion cycle of Corning Incorporated has shown some fluctuations over the past few years. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2021, the company's cash conversion cycle ranged from 87.11 days to 138.63 days, indicating some variability in the efficiency of its working capital management. However, starting from March 31, 2022, the company managed to bring down its cash conversion cycle consistently up to December 31, 2024, when it was 108.81 days.

A decreasing cash conversion cycle is generally considered positive as it suggests that the company is able to efficiently manage its working capital and generate cash flows from its operations more quickly. This could be a result of improvements in inventory management, accounts receivable collection, or accounts payable payment policies.

Overall, Corning Incorporated has shown improvements in its cash conversion cycle over the years, but continued monitoring is essential to ensure efficient cash flow management in the future.