John Bean Technologies Corporation (JBT)

John Bean Technologies Corp's liquidity ratios have shown improvements over the five-year period from 2019 to 2023.

The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has seen a significant increase from 1.49 in 2019 to 2.27 in 2023. This indicates that the company has more than enough current assets to cover its current liabilities, reflecting improved liquidity and financial health.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a positive trend, increasing from 0.98 in 2019 to 1.78 in 2023. This suggests that the company has a better ability to meet its short-term obligations without relying on selling inventory.

The cash ratio, which indicates the company's ability to cover immediate liabilities with its most liquid assets (cash and cash equivalents), has shown improvement as well, rising from 0.37 in 2019 to 1.34 in 2023. This signifies that John Bean Technologies Corp has significantly enhanced its ability to cover its short-term obligations with its readily available cash resources.

Overall, the increasing trend in all three liquidity ratios suggests that John Bean Technologies Corp has strengthened its liquidity position over the years, which is a positive indicator of the company's financial stability and ability to meet its short-term obligations.

---

Additional liquidity measure

The cash conversion cycle of John Bean Technologies Corp has shown some fluctuations over the past five years. It increased from 66.76 days in 2019 to 67.18 days in 2020, then decreased to 58.80 days in 2021 before rising to 70.54 days in 2022 and further to 82.31 days in 2023.

A longer cash conversion cycle indicates that the company takes longer to convert its investments in inventory and receivables into cash. This could be due to various factors such as slower receivables collection, extended inventory holding periods, or delays in payment to suppliers.

It is essential for John Bean Technologies Corp to effectively manage its cash conversion cycle to ensure optimal liquidity and efficiency in its operations. Analyzing the components of the cycle, such as days sales outstanding, days inventory outstanding, and days payables outstanding, can help identify areas for improvement in working capital management.