Kirby Corporation (KEX)

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 1.68 1.88 1.78 1.95 1.89 1.97 1.94 1.98 1.85 1.91 1.93 2.11 2.25 2.36 2.25 2.76 1.78 1.85 2.00 1.92
Quick ratio 1.03 0.88 0.85 0.90 1.10 0.91 0.87 0.88 0.83 1.01 0.96 1.04 0.85 0.94 0.95 0.79 0.79 0.76 0.90 0.77
Cash ratio 0.05 0.07 0.06 0.04 0.13 0.06 0.05 0.06 0.06 0.11 0.11 0.12 0.18 0.27 0.23 0.00 0.05 0.02 0.04 0.01

The liquidity ratios of Kirby Corp. provide insights into its ability to meet its short-term financial obligations.

The current ratio measures the company's ability to cover its short-term liabilities with its current assets. Kirby Corp.'s current ratio has been fluctuating but generally above 1, indicating that the company has sufficient current assets to cover its current liabilities. However, the slight downward trend over the quarters warrants monitoring to ensure continued liquidity.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Kirby Corp.'s quick ratio has also been fluctuating but tends to be around 1 or slightly above, suggesting that the company may rely on inventory to a certain extent to meet its short-term obligations.

The cash ratio is the most conservative liquidity measure, indicating the company's ability to cover its current liabilities with its cash and cash equivalents alone. Kirby Corp.'s cash ratio has been relatively low, with values below 0.25 in most quarters, suggesting that the company may need to rely on other current assets to meet its short-term obligations.

Overall, while Kirby Corp. appears to have generally adequate liquidity based on its current and quick ratios, the low cash ratio indicates a potential vulnerability in relying heavily on non-cash current assets to cover short-term obligations. Monitoring the trend of these ratios and the composition of current assets will be essential for assessing Kirby Corp.'s liquidity position accurately.

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 276.10 329.07 308.73 288.72 298.88 252.25 144.63 149.10 147.45 155.98 266.39 282.51 117.76 122.81 123.16 104.00 266.77 297.85 323.63 301.83

The cash conversion cycle of Kirby Corp. has shown fluctuations over the past eight quarters. The trend indicates that the company has been able to effectively manage its operating cycle, indicating efficiency in converting its investments in inventory and accounts receivable into cash.

In Q1 2023, there was a significant increase in the cash conversion cycle to 79.38 days, suggesting a temporary slowdown in the conversion of inventory and receivables into cash. However, this was preceded by a gradual decline from Q2 2022 to Q4 2022, reaching its lowest point in Q2 2023 at 68.02 days.

The overall pattern of the cash conversion cycle indicates that Kirby Corp. has been able to manage its working capital effectively, maintaining a relatively stable cycle duration over the quarters. This efficiency is crucial for the company's liquidity and financial health, as a shorter cash conversion cycle implies faster cash flows and better capital utilization. Continued monitoring and optimization of the cash conversion cycle will be important for Kirby Corp. in sustaining its financial performance and operational efficiency.