Matthews International Corporation (MATW)
Liquidity ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.45 | 1.66 | 1.82 | 1.88 | 1.64 | 1.63 | 1.57 | 1.73 | 1.53 | 1.93 | 1.81 | 2.01 | 1.76 | 1.88 | 1.85 | 1.78 | 1.82 | 1.87 | 1.94 | 2.10 |
| Quick ratio | 0.57 | 0.61 | 0.67 | 0.73 | 0.63 | 0.60 | 0.65 | 0.73 | 0.71 | 0.82 | 0.82 | 1.13 | 1.01 | 1.19 | 1.05 | 1.24 | 1.06 | 1.03 | 1.14 | 1.25 |
| Cash ratio | 0.09 | 0.11 | 0.13 | 0.11 | 0.11 | 0.10 | 0.11 | 0.13 | 0.18 | 0.15 | 0.16 | 0.21 | 0.14 | 0.29 | 0.15 | 0.32 | 0.13 | 0.14 | 0.22 | 0.14 |
The liquidity ratios of Matthews International Corporation show varying levels of liquidity over the past few quarters.
The current ratio, which assesses the company's ability to cover its short-term obligations with its current assets, has generally been above 1, indicating a healthy liquidity position. However, there have been fluctuations in the current ratio over the quarters, ranging from a low of 1.45 to a high of 2.10, suggesting some variability in the company's ability to meet its short-term obligations.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Matthews International Corporation's quick ratio has fluctuated as well, ranging from 0.57 to 1.25. The ratio has generally been lower than the current ratio, indicating that the company relies more on inventory to meet its short-term obligations.
The cash ratio, which reflects the company's ability to cover its current liabilities with its cash and cash equivalents, has also shown variability over time, ranging from 0.09 to 0.32. The company's cash ratio has generally been low compared to the current and quick ratios, suggesting that a significant portion of the company's current assets is not held in cash.
Overall, while the current, quick, and cash ratios indicate that Matthews International Corporation has maintained a generally satisfactory liquidity position, the fluctuations in these ratios over the quarters may warrant further investigation into the company's cash management and working capital practices to ensure ongoing liquidity stability.
Additional liquidity measure
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 79.21 | 77.40 | 78.47 | 86.68 | 81.19 | 81.52 | 83.45 | 87.97 | 76.41 | 75.36 | 72.47 | 91.60 | 92.36 | 97.52 | 102.54 | 110.96 | 105.54 | 105.81 | 106.96 | 119.74 |
The cash conversion cycle of Matthews International Corporation has shown fluctuating trends over the past several quarters. The average cash conversion cycle over the period is calculated to be approximately 85.23 days. This metric represents the average number of days it takes the company to convert its investments in inventory and other resources into cash flows from sales.
A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital, indicating effective inventory management and strong accounts receivable collection. Conversely, a higher cash conversion cycle may suggest inefficiencies in the company's operations.
In the most recent quarter, the cash conversion cycle was 79.21 days, which was an improvement compared to the previous quarter at 77.40 days. This indicates a slightly more efficient utilization of resources and quicker conversion of inventory and receivables into cash.
Overall, the company should continue monitoring its cash conversion cycle and working to efficiently manage its working capital to improve liquidity and overall financial performance.