Koppers Holdings Inc (KOP)

Based on the provided data, Koppers Holdings Inc has shown an improving trend in its current ratio over the years, with values ranging from 1.93 to 2.20. This indicates that the company's ability to meet short-term obligations with its current assets has strengthened over time.

However, the quick ratio, which excludes inventory from current assets, has shown some fluctuations, with values ranging from 0.10 to 0.21. This suggests that Koppers Holdings Inc may have varying levels of liquidity when considering only the most liquid assets to meet its short-term obligations.

Similarly, the cash ratio, reflecting the most conservative measure of liquidity, has also shown variability, ranging from 0.10 to 0.21. This ratio indicates the company's ability to cover its current liabilities solely with available cash and cash equivalents.

Overall, although the current ratio shows a positive trend in liquidity, the quick and cash ratios demonstrate some fluctuation in Koppers Holdings Inc's ability to meet short-term obligations with its most liquid assets. This may imply the need for closer monitoring of cash management and working capital efficiency to ensure sustained liquidity in the future.

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Additional liquidity measure

The cash conversion cycle of Koppers Holdings Inc has displayed fluctuations over the past five years. As of December 31, 2020, the cash conversion cycle stood at 82.50 days, indicating the time taken by the company to convert its investments in inventory and accounts receivable into cash. This metric slightly increased to 85.19 days by December 31, 2021 before decreasing to 79.36 days by December 31, 2022. In the following year, the cycle rose to 80.80 days as of December 31, 2023, and saw a further increase to 88.46 days by December 31, 2024.

The cash conversion cycle is a crucial indicator of operational efficiency and liquidity management, reflecting how effectively the company manages its working capital. The fluctuations in this metric suggest potential changes in inventory management, accounts receivable collection, and accounts payable policies within Koppers Holdings Inc. Further analysis and comparison with industry benchmarks would help in better understanding the company's financial performance and efficiency in managing its cash flows.