Monro Muffler Brake Inc (MNRO)

Liquidity ratios

	Mar 31, 2024	Dec 23, 2023	Sep 23, 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
Current ratio	0.56	0.56	0.52	0.52	0.58	0.63	0.63	0.67	0.76	0.80	0.78	0.80	0.92	0.86	1.06	1.35	2.34	0.93	0.95	0.93
Quick ratio	0.01	0.05	0.02	0.03	0.01	0.03	0.03	0.08	0.02	0.03	0.03	0.06	0.14	0.10	0.30	0.55	0.03	0.04	0.03	0.03
Cash ratio	0.01	0.05	0.02	0.03	0.01	0.03	0.03	0.08	0.02	0.03	0.02	0.05	0.10	0.08	0.27	0.52	0.00	0.03	0.02	0.03

Based on the provided data on Monro Muffler Brake Inc's liquidity ratios, we observe the following trends:

1. Current Ratio:
- The current ratio has shown inconsistencies over the recent quarters, ranging from 0.52 to 0.92.
- The ratio has declined significantly from the previous high of 2.34 in March 2020 to the latest value of 0.56 in March 2024.
- This indicates a potential strain on the company's short-term liquidity position in the most recent period.

2. Quick Ratio:
- The quick ratio, which provides a more conservative measure of liquidity by excluding inventory, has also exhibited fluctuations.
- The ratio has varied from a low of 0.01 to a high of 0.55 over the periods under review.
- Although the quick ratio improved slightly from December 2023 to March 2024, it remains relatively low and warrants attention.

3. Cash Ratio:
- The cash ratio, which represents the most stringent liquidity measure by considering only cash and cash equivalents, has shown a similar pattern to the quick ratio.
- While there was a slight improvement in the cash ratio from December 2023 to March 2024, the ratio remains low across the period.
- This suggests that Monro Muffler Brake Inc may have limited ability to cover its short-term obligations with cash on hand alone.

In summary, the liquidity ratios of Monro Muffler Brake Inc indicate a fluctuating and concerning trend, with a decline in overall liquidity levels over the recent quarters. The company may need to monitor its working capital management closely and consider strategies to improve its short-term liquidity position to mitigate potential financial risks.

Additional liquidity measure

		Mar 31, 2024	Dec 23, 2023	Sep 23, 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
Cash conversion cycle	days	-79.23	-75.22	-79.32	-118.53	-97.16	-71.45	-27.20	-11.47	14.66	28.09	35.72	40.73	53.31	25.97	22.57	34.56	43.55	30.55	30.65	33.71

The cash conversion cycle for Monro Muffler Brake Inc has varied over the past few quarters, indicating changes in its efficiency in managing cash flows related to its operations. From Dec 31, 2019, to Sep 30, 2020, the company experienced a relatively stable cash conversion cycle, ranging between 25.97 days and 34.56 days.

However, from Dec 31, 2020, to Jun 30, 2023, there was a notable increase in the cash conversion cycle, peaking at -97.16 days at the end of Mar 31, 2023. This negative value suggests that Monro Muffler Brake Inc was efficiently managing its cash flows, possibly due to quicker collections from customers and longer payment terms with suppliers.

From Sep 30, 2022, to Dec 23, 2023, the cash conversion cycle improved, dipping to its lowest point of -118.53 days by the end of Jun 30, 2023. This indicates that the company was able to convert its investments in inventory and accounts receivable back into cash at a faster rate.

Overall, it is important to monitor Monro Muffler Brake Inc's cash conversion cycle closely to assess its operational efficiency and liquidity management, as fluctuations in this metric can impact the company's financial health and performance.