JBTMarel Corp (JBTM)

The liquidity position of JBTMarel Corp over the provided periods reflects fluctuations and notable trends across its current, quick, and cash ratios.

The current ratio, which measures a company's ability to meet short-term obligations with its current assets, exhibited variability during the analyzed periods. It generally ranged from a low of approximately 1.27 on March 31, 2021, to a peak of 3.48 on December 31, 2024. Particularly, the ratio showed a significant upward trajectory starting in late 2024, indicating improved liquidity, with the ratio increasing from around 1.41 at September 30, 2022, to over 3.48 by the end of 2024. However, a decline is observed through mid-2025, reaching 0.93 on June 30, 2025, and further dropping to 1.26 on March 31, 2025, suggesting some deterioration in short-term liquidity during the most recent periods.

The quick ratio, excluding inventory from current assets, demonstrates a similar trend but with generally lower values, reflecting the company's liquidity quality excluding inventory cash. It fluctuated modestly but showed a marked increase starting in late 2023, reaching as high as 2.92 on December 31, 2024, before substantially decreasing to 0.54 by June 30, 2025, indicating a significant weakening in quick assets relative to current liabilities.

The cash ratio, representing the most conservative liquidity measure, remained relatively low throughout most periods, with values generally below 1.0. It experienced notable peaks in late 2023 with a ratio of 1.00 at December 31, 2023, and 1.03 on March 31, 2024. The highest recorded value was 2.29 at December 31, 2024. Conversely, it declined sharply thereafter, reaching as low as 0.07 in June 2025, indicating a reduced capacity to meet short-term liabilities with liquid cash on hand in the recent periods.

Overall, JBTMarel Corp experienced periods of improved liquidity, notably toward the end of 2024, but recent data suggests a downturn in liquidity ratios, especially in mid-2025, primarily driven by declines in cash and quick ratios. This pattern indicates either increased short-term liabilities or declining liquid assets, warranting further analysis to understand underlying causes and potential implications for the company's short-term financial health.

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Additional liquidity measure

The cash conversion cycle (CCC) of JBTMarel Corp exhibits notable fluctuations over the analyzed period, indicating evolving operational efficiencies and working capital management strategies. As of September 30, 2020, the CCC was approximately 80.23 days. This figure remained relatively stable through 2020 and early 2021, with slight increases and decreases, reaching around 75.20 days by March 31, 2021. Throughout 2021, the CCC experienced modest growth, peaking at 94.33 days on June 30, 2022.

A significant upward trend is observable beginning in late 2022 and continuing through 2023. Notably, the CCC surged to approximately 119.67 days by March 31, 2023, and further increased to 177.59 days by March 31, 2025. This substantial extension reflects a lengthening of the company's net operating cycle, which could suggest slower receivables collection, extended inventory holding periods, or delays in accounts payable payments.

The data indicates periods of relatively stable or decreasing CCC, such as the decline from 81.61 days at December 31, 2020, to 71.90 days at June 30, 2021, and a decline from the peak of 115.40 days at September 30, 2022, to 78.50 days at December 31, 2022. However, after this reduction, the cycle expanded markedly, especially between December 2023 and March 2025.

Overall, the progression of JBTMarel Corp's CCC suggests a trend toward increasing operational and liquidity challenges, with prolonged cycles potentially impacting cash flow management negatively. The notable escalation in the latter part of the period warrants further investigation into underlying operational or strategic changes affecting receivables, inventory, and payables management.