Chart Industries Inc (GTLS)

Based on the provided data, the liquidity ratios of Chart Industries Inc have shown some fluctuations over the years.

1. Current Ratio:
- The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, was 1.11 as of December 31, 2020, indicating that the company had just enough current assets to cover its current liabilities.
- There was a slight improvement in the current ratio to 1.23 as of December 31, 2021, suggesting a better ability to meet short-term obligations.
- A significant increase was observed in the current ratio to 3.41 as of December 31, 2022, indicating that the company had substantially increased its current assets relative to its current liabilities.
- However, there was a decrease in the current ratio to 1.19 by December 31, 2023, and a subsequent increase to 1.38 by December 31, 2024, which could suggest some fluctuation in the company's short-term liquidity position.

2. Quick Ratio:
- The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, was low at 0.32 as of December 31, 2020.
- There was a further decrease in the quick ratio to 0.18 by December 31, 2021, indicating a potential strain on the company's ability to meet short-term obligations without relying on inventory sales.
- The quick ratio improved to 0.61 as of December 31, 2022, suggesting a better ability to cover short-term liabilities with more liquid assets.
- However, there was a sharp decline in the quick ratio to 0.11 by December 31, 2023, followed by a slight recovery to 0.17 by December 31, 2024, indicating potential liquidity challenges.

3. Cash Ratio:
- The cash ratio, which is an even more stringent measure of liquidity as it only considers cash and cash equivalents, mirrored the trends of the quick ratio.
- The cash ratio was 0.32 as of December 31, 2020, dropped to 0.18 by December 31, 2021, then increased to 0.61 by December 31, 2022, before declining to 0.11 by December 31, 2023, and recovering to 0.17 by December 31, 2024.

Overall, the liquidity ratios of Chart Industries Inc have exhibited some variability over the years, with improvements seen in certain years but also some declines in liquidity ratios in others. Further analysis of the company's cash flow and working capital management may provide additional insights into its liquidity position.

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Additional liquidity measure

The cash conversion cycle for Chart Industries Inc has shown fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was 107.30 days. This increased to 118.12 days by December 31, 2021, indicating a slower conversion of inventory and receivables into cash.

However, by December 31, 2022, there was a slight improvement with the cash conversion cycle decreasing to 108.41 days. The trend continued positively as of December 31, 2023, with a significant drop to 90.98 days, suggesting more efficient management of working capital and quicker conversion of assets into cash.

The most notable improvement was seen by December 31, 2024, where the cash conversion cycle decreased substantially to 64.60 days. This indicates that Chart Industries Inc has been able to streamline its operating cycle, potentially by managing inventory levels, collecting receivables more efficiently, or extending payables.

Overall, the decreasing trend in the cash conversion cycle over the years suggests that the company's liquidity management and operational efficiency have improved, leading to a quicker transformation of investments in resources into cash inflows.