Koppers Holdings Inc (KOP)
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 | 2.09 | 2.54 | 2.53 | 2.29 | 2.14 | 2.24 | 2.43 | 2.25 | 1.97 | 2.07 | 2.11 | 2.28 | 2.20 | 2.30 | 2.30 | 2.28 | 1.93 | 1.99 | 1.96 | 1.87 |
| Quick ratio | 0.13 | 0.16 | 0.17 | 0.16 | 0.21 | 0.18 | 0.16 | 0.15 | 0.10 | 0.15 | 0.13 | 0.16 | 0.15 | 0.17 | 0.18 | 0.17 | 0.13 | 0.15 | 0.11 | 0.17 |
| Cash ratio | 0.13 | 0.16 | 0.17 | 0.16 | 0.21 | 0.18 | 0.16 | 0.15 | 0.10 | 0.15 | 0.13 | 0.16 | 0.15 | 0.17 | 0.18 | 0.17 | 0.13 | 0.15 | 0.11 | 0.17 |
Koppers Holdings Inc's liquidity ratios reflect a healthy liquidity position over the analyzed period. The current ratio steadily increased from 1.87 as of March 31, 2020, to a peak of 2.54 as of September 30, 2024, before decreasing to 2.09 by December 31, 2024. This indicates the company's ability to cover its short-term obligations with its current assets improved over time but slightly declined towards the end of the period.
The quick ratio, which excludes inventory from current assets, shows a generally stable trend ranging from 0.10 to 0.21 during the same period. It demonstrates that Koppers Holdings Inc may have more difficulty meeting its short-term obligations if inventory cannot be easily converted into cash.
The cash ratio mirrored the quick ratio's trend, maintaining a range of 0.10 to 0.21 throughout the period. This indicates that the company has a moderate ability to cover its short-term liabilities using only its cash and cash equivalents.
Overall, the current, quick, and cash ratios suggest that Koppers Holdings Inc maintained a consistently good liquidity position over the analyzed period, with the ability to meet its short-term obligations using various components of current assets.
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 | 86.53 | 84.90 | 83.86 | 83.00 | 82.77 | 78.46 | 79.17 | 82.64 | 79.36 | 71.51 | 81.04 | 86.23 | 85.19 | 81.85 | 81.31 | 83.36 | 82.50 | 73.63 | 69.28 | 71.17 |
The cash conversion cycle of Koppers Holdings Inc has shown some fluctuations over the reported periods. The company's cash conversion cycle, which represents the average number of days it takes for the company to convert its investments in inventory and other resources back into cash through sales and collections from customers, varied between approximately 69 to 86 days.
In general, a lower cash conversion cycle is favorable as it indicates that the company is able to efficiently manage its working capital and convert its investments into cash quicker. Koppers Holdings Inc saw a downward trend in its cash conversion cycle from March 2020 to September 2022, indicating improvements in managing its working capital and liquidity.
However, from December 2022 to December 2024, there was an increase in the cash conversion cycle, peaking at 86.53 days by the end of December 2024. This may suggest that the company took longer to convert its investments back into cash, which could potentially indicate challenges in managing inventory, collecting receivables, or paying off payables.
Overall, it is crucial for Koppers Holdings Inc to closely monitor its cash conversion cycle and work towards optimizing its working capital management to ensure efficient operations and healthy liquidity position.