Matson Inc (MATX)
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 | 1.09 | 1.13 | 0.93 | 0.97 | 1.07 | 1.11 | 1.05 | 1.06 | 1.31 | 1.46 | 1.76 | 1.43 | 1.15 | 0.88 | 0.76 | 0.60 | 0.60 | 0.64 | 0.61 | 0.66 |
| Quick ratio | 0.48 | 1.57 | 0.29 | 0.05 | 0.24 | 0.27 | 0.22 | 0.17 | 0.43 | 0.40 | 0.96 | 0.64 | 0.46 | 0.21 | 0.13 | 0.11 | 0.12 | 0.15 | 0.04 | 0.04 |
| Cash ratio | 0.48 | 1.57 | 0.29 | 0.05 | 0.24 | 0.27 | 0.22 | 0.17 | 0.43 | 0.40 | 0.96 | 0.64 | 0.46 | 0.21 | 0.13 | 0.11 | 0.12 | 0.15 | 0.04 | 0.04 |
Matson Inc's liquidity ratios have shown fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally improved since March 2020, with a significant increase from 0.66 in March 2020 to 1.09 in December 2024. This indicates that the company's liquidity position has strengthened over the period.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also demonstrated variability. The ratio was relatively low in the earlier periods, but it experienced a sharp increase in September 2024 to 1.57 before dropping to 0.48 in December 2024, signifying potential fluctuations in the company's ability to meet its immediate obligations without relying on inventory.
Furthermore, the cash ratio, which assesses the firm's ability to cover its short-term liabilities with cash and cash equivalents alone, has followed a similar trend to the quick ratio, peaking at 1.57 in September 2024 before declining to 0.48 in December 2024. This suggests that Matson Inc may have had periods of stronger and weaker cash reserves during the timeframe analyzed.
In conclusion, while Matson Inc has shown improvements in its current ratio over the years, there have been fluctuations in its quick and cash ratios, which indicate variations in the company's short-term liquidity position and its ability to quickly meet financial obligations.
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 | 0.00 | 0.00 | 3.93 | 3.82 | 3.32 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of Matson Inc has remained consistently low, hovering around 0.00 days for most quarters up to December 31, 2023. This indicates that the company is efficient in managing its cash flow from the point of sale to the collection of cash. However, there was a slight increase in the cash conversion cycle to 3.32 days by the end of December 31, 2023, and further increased to 3.82 days by the end of March 31, 2024.
These increases suggest that Matson Inc may have experienced delays in collecting cash from customers or in managing its inventory efficiently during these quarters. Going forward, the company should closely monitor its accounts receivable and inventory turnover to ensure a lower cash conversion cycle, which reflects better liquidity and operational efficiency. This trend should be monitored closely to ensure optimal cash flow management in the future.