Matson Inc (MATX)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.09 | 1.07 | 1.31 | 1.15 | 0.60 |
| Quick ratio | 0.48 | 0.24 | 0.43 | 0.46 | 0.12 |
| Cash ratio | 0.48 | 0.24 | 0.43 | 0.46 | 0.12 |
Matson Inc's liquidity ratios have shown improvements over the years, indicating a stronger ability to meet short-term obligations.
The current ratio has increased steadily from 0.60 in 2020 to 1.09 in 2024, with a peak at 1.31 in 2022. This suggests that Matson Inc has increased its current assets relative to current liabilities, showing a better capacity to cover its short-term debts.
The quick ratio, a more stringent measure of liquidity, also exhibits an upward trend, from 0.12 in 2020 to 0.48 in 2024. This indicates that Matson Inc has a sufficient level of highly liquid assets to meet its immediate liabilities without relying on inventory.
Similarly, the cash ratio, which focuses solely on cash and cash equivalents, has improved from 0.12 in 2020 to 0.48 in 2024. This signifies that Matson Inc has an increased ability to settle its current liabilities solely with cash on hand.
Overall, the trend in Matson Inc's liquidity ratios reflects a strengthening financial position and an enhanced ability to meet short-term obligations, which is a positive sign for the company's liquidity management.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Based on the provided data, Matson Inc's cash conversion cycle has consistently been 0.00 days for the years 2020, 2021, 2022, 2023, and 2024. A cash conversion cycle of 0.00 days indicates that Matson Inc is efficiently managing its cash flow and working capital. This suggests that the company is able to quickly convert its investments in inventory and receivables into cash without experiencing delays. A zero cash conversion cycle is a positive indicator of effective cash management and liquidity, reflecting the company's ability to efficiently generate and utilize cash resources.