JBTMarel Corp (JBTM)

The liquidity ratios of JBTMarel Corp reveal significant improvements over the period from December 31, 2020, to December 31, 2024. The current ratio increased steadily from 1.35 in 2020 to 3.48 in 2024, indicating an enhanced capacity to meet short-term obligations with current assets. This upward trend suggests the company has accumulated a broader base of liquid assets relative to its current liabilities, reflecting improved liquidity management.

The quick ratio, which excludes inventories and other less liquid assets, demonstrated a similar positive trajectory, climbing from 0.77 in 2020 to 2.92 in 2024. The ratio was relatively stable and modest around 0.75–0.77 in 2020 and 2021 but saw a substantial rise to 0.54 in 2022 and then a notable surge to 1.59 in 2023, culminating at 2.92 in 2024. This progression indicates a strengthening of the company's ability to cover immediate liabilities using its most liquid assets, such as receivables and cash.

The cash ratio, which measures the proportion of total current liabilities covered solely by cash and cash equivalents, exhibited a dramatic increase over the analyzed period. It remained low at 0.10 in 2020 and 0.14 in 2021, then declined slightly to 0.11 in 2022. However, it experienced an outstanding rise to 1.00 in 2023 and further to 2.29 in 2024. This dramatic enhancement reflects a substantial accumulation of cash assets, positioning the company to meet its short-term liabilities entirely with cash and cash equivalents, thereby greatly reducing liquidity risk.

Overall, the analysis indicates a clear trend of strengthening liquidity position for JBTMarel Corp, with all three ratios showing marked improvement. The company has transitioned from moderate liquidity levels in 2020 and 2021 to a robust liquidity position by 2024, characterized especially by considerable growth in cash holdings. This positive trajectory suggests enhanced financial resilience, increased ability to cover short-term obligations, and potentially a strategic emphasis on liquidity preservation and risk mitigation.

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Additional liquidity measure

The cash conversion cycle (CCC) of JBTMarel Corp has exhibited fluctuations over the specified period from December 31, 2020, to December 31, 2024. At the end of 2020, the CCC was approximately 81.61 days. This metric increased significantly in 2021 to approximately 104.02 days, indicating a lengthening of the period it takes for the company to convert its investments in inventory and accounts receivable into cash, potentially reflecting extended inventory holding periods or slower receivables collection.

Between 2021 and 2022, the CCC decreased to approximately 93.09 days, suggesting some improvement in cash flow efficiency, though it remained elevated relative to 2020 levels. However, the subsequent trend indicates a renewed elongation, with the CCC rising again to approximately 98.65 days in 2023, and further increasing to around 105.48 days in 2024. This overall upward trend signifies a gradual elongation of the company's cash cycle over recent years.

The observed pattern suggests that JBTMarel Corp has experienced periods of operational and liquidity cycle elongation, which may be attributable to changes in inventory management, receivables collection policies, or payment terms with suppliers. The sustained increase from 2022 onward indicates a potential need to review operational efficiencies related to working capital management, as a longer CCC can impact liquidity and investment capacity.