International Flavors & Fragrances Inc (IFF)

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	1.67	1.74	1.64	1.53	1.99	1.79	1.64	1.86	1.92	1.99	1.95	1.89	1.61	1.82	2.24	1.97	1.90	2.05	2.60	2.56
Quick ratio	0.65	0.67	0.64	0.51	0.62	0.71	0.58	0.70	0.72	0.74	0.93	0.89	0.83	0.87	1.09	0.96	0.96	1.02	1.28	1.30
Cash ratio	0.19	0.17	0.16	0.12	0.13	0.15	0.12	0.16	0.20	0.19	0.29	0.27	0.34	0.29	0.37	0.30	0.39	0.35	0.37	0.42

The liquidity ratios of International Flavors & Fragrances Inc. have shown some fluctuations over the past eight quarters.

The current ratio, which indicates the company's ability to pay its short-term obligations with its current assets, has been relatively stable around 1.6 to 1.8, with a noticeable decrease in Q1 2023 compared to the previous quarter.

The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. It has varied between 0.67 and 0.93, showing some volatility over the quarters.

The cash ratio, depicting the proportion of cash and cash equivalents to current liabilities, has demonstrated a similar pattern to the quick ratio, ranging from 0.20 to 0.37.

Overall, International Flavors & Fragrances Inc. has maintained moderate levels of liquidity, with the current ratio generally above 1, indicating that the company has sufficient current assets to cover its short-term liabilities. However, the declining trend in the quick ratio and cash ratio in recent quarters may suggest a need for careful monitoring of the company's liquidity position.

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	85.40	104.77	100.85	102.99	98.92	100.43	106.96	100.30	92.16	115.05	145.73	203.21	119.09	126.34	129.69	131.04	131.21	117.55	128.31	127.08

The cash conversion cycle of International Flavors & Fragrances Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased to 112.27 days from 128.65 days in Q3 2023. This indicates an improvement in the company's efficiency in converting its inventory into cash during this period.

However, comparing Q4 2023 to the same quarter in the previous year, there was a slight increase in the cash conversion cycle from 144.00 days to 112.27 days, suggesting a longer time taken to convert inventory into cash compared to the previous year.

Overall, the trend for International Flavors & Fragrances Inc.'s cash conversion cycle appears to fluctuate over the quarters, indicating potential challenges in managing its inventory, accounts receivable, and accounts payable efficiently. Further analysis and investigation may be required to understand the underlying reasons for these fluctuations and to implement strategies to improve the cash conversion cycle going forward.