Chart Industries Inc (GTLS)

Chart Industries Inc's liquidity ratios show fluctuations over the past five years, indicating varying levels of the company's ability to meet short-term obligations with its current assets.

The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has been inconsistent. It peaked in 2022 at 3.41, suggesting a strong ability to meet immediate obligations. However, the ratio dropped significantly in 2023 to 1.19, which may raise concerns about the company's short-term liquidity position.

The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, also fluctuated over the years. While it generally remained above 1, indicating the company's ability to cover short-term liabilities without relying on inventory, the ratio decreased notably in 2023 to 0.87. This decrease may imply a potential strain on liquidity if the company needs to meet obligations quickly.

The cash ratio, which represents the proportion of current liabilities covered by cash and cash equivalents, showed similar volatility. The ratio dropped to 0.21 in 2023, indicating a decline in the company's ability to meet immediate obligations with cash on hand alone.

Overall, the fluctuations in liquidity ratios suggest that Chart Industries Inc experienced changes in its short-term liquidity position over the years. It is important for stakeholders to closely monitor these ratios to assess the company's ability to meet its short-term financial obligations.

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Additional liquidity measure

The cash conversion cycle of Chart Industries Inc has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle stood at 98.02 days, reflecting an improvement compared to the previous year. This indicates that the company is efficiently managing its working capital to convert inventory into cash more quickly.

In 2022, the cash conversion cycle was 137.75 days, which was higher than in 2021 when it was 144.85 days. This suggests that the company may have faced challenges in managing its inventory, accounts receivable, and accounts payable efficiently during those years.

In 2020, the cash conversion cycle was 133.67 days, showing a slight improvement from 2019 when it was 116.92 days. This indicates that the company may have experienced some delays in converting its investments in inventory and receivables into cash during the year.

Overall, Chart Industries Inc has showcased fluctuations in its cash conversion cycle over the past five years, with varying levels of efficiency in managing its working capital. It is important for the company to continue monitoring and optimizing its cash conversion cycle to enhance its liquidity and operational efficiency.