Knowles Cor (KN)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.83 2.35 2.36 2.75 2.61 3.62 3.47 3.06 3.66 2.87 2.54 2.68 2.29 1.39 1.28 1.49 1.41 3.15 1.91 3.33
Quick ratio 1.19 1.07 1.23 1.49 1.35 1.81 1.59 1.29 1.85 1.30 1.18 1.36 1.30 0.86 0.70 0.98 0.94 1.92 1.16 2.02
Cash ratio 0.66 0.50 0.47 0.72 0.53 0.70 0.50 0.42 0.49 0.32 0.32 0.35 0.41 0.45 0.31 0.60 0.50 1.01 0.73 1.11

Knowles Cor's liquidity ratios have exhibited some fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 1, indicating a good level of liquidity. The ratio increased from around 1.9 in June 2020 to a peak of 3.66 in December 2022 before slightly declining to 2.36 by June 2024.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also showed fluctuations. Starting at 1.16 in June 2020, the ratio varied over the years but generally remained above 1, demonstrating the company's ability to cover its short-term obligations without relying on inventory. The quick ratio ranged from a low of 0.70 in June 2021 to a high of 1.85 in December 2022.

The cash ratio, which indicates the company's ability to cover its current liabilities with its most liquid assets (cash and cash equivalents), has also shown variability. It started at 0.73 in June 2020, increased to 0.72 by March 2024, and then decreased to 0.66 by December 2024. This suggests that Knowles Cor has maintained a reasonable level of cash reserves relative to its short-term obligations over the years.

Overall, while there have been fluctuations in Knowles Cor's liquidity ratios, the company has generally maintained a strong liquidity position, with current, quick, and cash ratios indicating its ability to meet short-term financial obligations. Management should continue monitoring these ratios to ensure ongoing liquidity and financial stability.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 108.25 121.33 180.76 185.21 162.24 197.89 184.45 172.83 165.87 164.00 145.64 129.49 106.28 111.43 113.02 96.21 107.22 129.32 111.68 109.81

The cash conversion cycle of Knowles Cor has displayed fluctuations over the periods analyzed. The cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, ranged from a low of 96.21 days on March 31, 2021, to a high of 197.89 days on September 30, 2023.

Knowles Cor's cash conversion cycle trended upwards from 2020 to 2023 before experiencing a significant decrease to 108.25 days on December 31, 2024. This downward trend suggests a potential improvement in the company's efficiency in managing its working capital during the final period analyzed.

Analyzing the cash conversion cycle can provide insights into a company's operational efficiency and financial health. A shorter cycle indicates that Knowles Cor is able to more quickly convert resources into cash, potentially leading to improved liquidity and profitability. Conversely, a longer cycle may signal inefficiencies in inventory management or difficulties in collecting receivables. It is essential for the company to monitor and manage its cash conversion cycle effectively to optimize its working capital and overall financial performance.