IDEX Corporation (IEX)

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 2.53 2.97 3.41 3.37 2.89 3.11 3.06 3.10 2.57 3.23 3.02 3.59 3.50 3.38 3.32 4.37 4.15 3.71 3.48 3.51
Quick ratio 0.99 1.12 1.48 1.35 1.08 1.20 0.98 1.04 0.79 1.42 1.17 1.66 1.88 1.72 1.59 2.54 2.57 2.14 1.86 1.55
Cash ratio 0.99 1.12 1.48 1.35 1.08 1.20 0.98 1.04 0.79 1.42 1.17 1.66 1.88 1.72 1.59 2.54 2.57 2.14 1.86 1.55

Based on the provided data for IDEX Corporation, let's analyze the liquidity ratios:

1. Current Ratio: The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates better liquidity. IDEX Corporation's current ratio has fluctuated over the quarters, ranging between a low of 2.53 and a high of 4.37. The company generally maintains a current ratio above 2, indicating a relatively healthy liquidity position.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. IDEX Corporation's quick ratio has shown variability over time, with values ranging from 0.79 to 2.57. While the quick ratio is generally lower than the current ratio, it still demonstrates the company's ability to meet short-term obligations without relying heavily on inventory.

3. Cash Ratio: The cash ratio is the most conservative liquidity measure as it only considers cash and cash equivalents to cover current liabilities. IDEX Corporation's cash ratio has varied between 0.79 and 2.57, reflecting the company's ability to cover short-term obligations with cash on hand. The decreasing trend in the cash ratio over the quarters might suggest a lower proportion of cash relative to current liabilities.

In summary, IDEX Corporation has maintained healthy liquidity levels over the quarters, as indicated by adequate current, quick, and cash ratios. However, the decreasing trend in some ratios, particularly the cash ratio, should be monitored to ensure the company can meet its short-term obligations effectively.

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 86.01 100.11 87.77 86.04 84.07 88.60 95.80 100.38 97.94 98.30 101.25 98.40 87.77 86.97 92.91 81.69 79.91 83.77 89.15 91.83

The cash conversion cycle of IDEX Corporation has fluctuated over the periods provided. The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flow from sales. A shorter cash conversion cycle is generally considered favorable as it indicates that the company is able to efficiently convert its resources into cash.

Based on the data provided, the cash conversion cycle of IDEX Corporation ranged from a low of 79.91 days on December 31, 2020, to a high of 101.25 days on June 30, 2022. The company experienced significant fluctuations in its cash conversion cycle, with some periods showing improvements in efficiency while others showing a lengthening of the cycle.

It is essential for IDEX Corporation to closely monitor its cash conversion cycle and work towards optimizing it to ensure efficient management of its working capital. By reducing the time it takes to convert inventory into cash, the company can improve its liquidity position and potentially generate higher returns on its investments. Further analysis and comparison with industry benchmarks may help the company identify areas for improvement and implement strategies to enhance its cash conversion cycle efficiency.