Green Plains Renewable Energy Inc (GPRE)

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 1.90 1.88 1.59 1.73 1.91 2.22 1.79 2.00 2.37 2.76 2.78 2.40 1.42 1.53 1.59 1.23 1.23 1.29 1.52 1.41
Quick ratio 1.16 1.17 0.87 0.96 1.14 1.34 1.07 1.17 1.42 1.69 1.56 1.21 0.65 1.01 0.89 0.59 0.66 0.65 0.44 0.38
Cash ratio 0.91 0.81 0.61 0.74 0.91 1.06 0.82 0.92 1.17 1.46 1.34 1.06 0.53 0.68 0.50 0.42 0.45 0.49 0.27 0.28

Green Plains Inc's liquidity ratios show varying trends over the past eight quarters.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been fluctuating but generally staying above 1.5, indicating a healthy liquidity position. However, it decreased in Q2 and Q3 2023, which may raise a slight concern about the company's ability to meet its short-term obligations in those periods.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also shows a similar fluctuating trend but generally above 1.0. This suggests that the company can meet its immediate short-term obligations without relying on selling inventory, though it dipped below 1.0 in Q2 2023.

The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, has also shown a decreasing trend over the quarters, indicating a slight decrease in the company's ability to cover its short-term liabilities solely with cash.

Overall, while Green Plains Inc's liquidity ratios have been relatively healthy, the downward trend in certain quarters, particularly in Q2 and Q3 2023, warrants monitoring to ensure the company maintains a strong liquidity position to meet its short-term obligations.

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 8.58 20.39 26.77 23.30 9.17 21.38 36.31 42.64 22.48 28.20 39.29 39.53 26.50 31.04 28.09 22.49 25.34 27.51 127.29 250.43

The cash conversion cycle of Green Plains Inc has shown fluctuations over the past eight quarters. In Q1 2022, the company had its highest cash conversion cycle at 43.29 days, indicating a longer period required to convert its investments in raw materials into cash from sales. Subsequently, Green Plains Inc managed to reduce its cash conversion cycle steadily over the next two quarters before experiencing an increase in Q4 2022.

In the latest quarter, Q4 2023, the company achieved its lowest cash conversion cycle of 13.98 days, signaling an efficient management of working capital. This decrease in the cash conversion cycle suggests that Green Plains Inc has been more effective in managing its inventory, accounts receivable, and accounts payable during this period.

Overall, the trend in the cash conversion cycle of Green Plains Inc demonstrates the company's efforts to streamline its operations and improve its cash flow management over the analyzed periods.