Monro Muffler Brake Inc (MNRO)

Liquidity ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Dec 23, 2023	Sep 30, 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
Current ratio	0.54	0.53	0.59	0.56	0.56	0.56	0.52	0.52	0.52	0.58	0.63	0.63	0.67	0.76	0.80	0.78	0.80	0.92	0.86
Quick ratio	0.05	0.07	0.07	0.10	0.08	0.05	0.05	0.02	0.06	0.13	0.06	0.06	0.11	0.13	0.08	0.08	0.11	0.24	0.15
Cash ratio	0.02	0.04	0.04	0.01	0.05	0.05	0.02	0.02	0.03	0.01	0.03	0.03	0.08	0.02	0.03	0.02	0.05	0.10	0.08

Monro Muffler Brake Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, show a mix of strengths and weaknesses over the period analyzed.

First, focusing on the current ratio, which measures the company's ability to cover short-term liabilities with its current assets, we observe a declining trend. The current ratio has decreased from 0.86 in December 2020 to 0.00 in March 2025. This suggests that over time, Monro Muffler Brake Inc's current assets may not be sufficient to cover its current liabilities, indicating potential liquidity challenges.

Moving on to the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, the trend also shows a decline. From 0.15 in December 2020, the quick ratio drops to 0.00 in March 2025. This indicates that Monro Muffler Brake Inc may have difficulty meeting its short-term obligations without relying on the sale of inventory.

Lastly, examining the cash ratio, which indicates the company's ability to pay off its current liabilities using only its cash and cash equivalents, we see fluctuations in the ratios over time. The cash ratio ranges from 0.00 to 0.10, showing inconsistency in the company's cash position and its ability to settle immediate obligations with available cash.

Overall, the declining trend in both the current and quick ratios, along with the inconsistent cash ratio, suggest that Monro Muffler Brake Inc may face liquidity challenges in the future. It may be essential for the company to closely monitor its liquidity position, manage its working capital effectively, and consider strategies to improve its short-term financial health.

Additional liquidity measure

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Dec 23, 2023	Sep 30, 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
Cash conversion cycle	days	0.00	-61.18	-59.37	-68.67	-46.43	-71.00	-74.23	-54.76	-57.83	-53.48	-33.69	-32.28	-16.84	-8.04	23.05	26.18	24.75	26.93	38.30	24.25

Monro Muffler Brake Inc's cash conversion cycle has shown significant fluctuations over the past few years. Starting from approximately 24 days at the end of December 2020, the company's cash conversion cycle increased to around 38 days by the end of March 2021. Subsequently, the cycle decreased to approximately 27 days by June 2021 and remained relatively stable for the following quarters.

Interestingly, a notable shift occurred in the second half of 2022, where Monro Muffler Brake Inc's cash conversion cycle turned negative. This indicates that the company was able to convert its inventory and receivables into cash at a faster rate than paying its liabilities. This trend continued throughout 2023 and into 2024, with the cash conversion cycle staying negative and reaching its lowest point of around -74 days by the end of December 2023.

By March 2025, the cash conversion cycle appears to have normalized to 0 days, suggesting that Monro Muffler Brake Inc's operations were back in balance regarding the time it takes to convert resources into cash. This improvement may indicate enhanced efficiency in managing inventory, collecting receivables, and paying off liabilities within a reasonable timeframe.