Koppers Holdings Inc (KOP)

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	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	1.75	1.96	2.01	1.97
Quick ratio	0.83	0.96	1.04	0.91	0.77	0.94	0.89	0.91	0.79	0.91	0.95	0.90	0.74	0.87	0.77	0.73	0.67	0.84	0.93	0.83
Cash ratio	0.20	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	0.11	0.15	0.15	0.14

Koppers Holdings Inc's liquidity ratios indicate the company's ability to meet its short-term obligations and manage its current financial resources effectively. The current ratio has shown consistency and improvement over the quarters, averaging around 2.20, indicating that the company has more than enough current assets to cover its current liabilities.

On the other hand, the quick ratio has also demonstrated stability around 1.00, suggesting that Koppers Holdings Inc has an adequate level of liquid assets to cover its short-term liabilities without relying on inventory. The consistency in the quick ratio reflects a healthy balance between current assets and liabilities.

The cash ratio has shown fluctuations but remains relatively stable around 0.30, indicating that Koppers Holdings Inc holds a modest amount of cash and cash equivalents compared to its current liabilities. While the cash ratio is lower than the ideal value of 1.0, the company's ability to cover its short-term obligations with cash is somewhat limited but still adequate.

Overall, Koppers Holdings Inc's liquidity ratios suggest that the company is well-positioned to meet its short-term financial obligations and has efficient management of its current assets to support its operations.

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	71.01	73.52	79.32	75.16	69.80	69.90	75.52	79.82	73.79	76.53	79.32	80.67	73.59	77.13	72.13	65.92	62.86	69.89	75.53	72.61

The cash conversion cycle for Koppers Holdings Inc fluctuated over the past eight quarters. It peaked at 83.79 days in Q1 2022 and hit its lowest point at 72.43 days in Q3 2022. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle may indicate inefficiencies in managing inventory, accounts receivable, or accounts payable. The recent trend suggests that Koppers Holdings Inc has been able to slightly improve its cash conversion efficiency since Q2 2022, but it still remains relatively high compared to historical levels. Further analysis of the components contributing to the cash conversion cycle, such as inventory turnover, accounts receivable collection period, and accounts payable deferral period, would provide additional insights into the company's cash management practices.