MSA Safety (MSA)

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 2.79 2.68 2.45 2.51 2.36 2.62 2.84 2.84 2.54 2.47 2.51 2.47 2.40 2.15 2.42 2.49 2.44 2.61 2.46 2.66
Quick ratio 0.57 0.49 0.42 0.47 0.45 0.51 0.49 0.47 0.50 0.53 0.50 0.56 0.57 0.49 0.70 0.78 0.76 0.71 0.67 0.73
Cash ratio 0.57 0.49 0.42 0.47 0.45 0.51 0.49 0.47 0.50 0.53 0.50 0.56 0.57 0.49 0.70 0.78 0.76 0.71 0.67 0.73

The current ratio for MSA Safety has fluctuated over the past few years, ranging from a low of 2.15 on September 30, 2021, to a high of 2.84 on both March 31, 2023, and June 30, 2023. Generally, the company has maintained a current ratio above 2.0, indicating a relatively healthy level of liquidity to cover its short-term obligations.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown more variability. The quick ratio has ranged from a low of 0.42 on June 30, 2024, to a high of 0.78 on March 31, 2021. The quick ratio dropped below 0.5 on a few occasions, suggesting a potential strain on MSA Safety's ability to meet its short-term obligations without relying on selling inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has followed a similar trend to the quick ratio. It ranged from a low of 0.42 on June 30, 2024, to a high of 0.78 on March 31, 2021. The cash ratio also fell below 0.5 at times, indicating that MSA Safety may have faced tighter liquidity constraints in those periods.

Overall, while MSA Safety generally maintained a current ratio above 2.0, signaling a healthy level of liquidity, the variability in the quick ratio and cash ratio suggests some fluctuations in the company's ability to quickly cover its short-term obligations with liquid assets. It would be important for MSA Safety to monitor and manage its liquidity position closely to ensure it can meet its financial obligations in a timely manner.

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 114.31 136.98 124.58 119.38 114.43 127.97 135.75 144.43 144.58 151.89 151.63 146.25 129.91 115.95 111.27 107.41 95.29 125.19 108.63 92.37

The cash conversion cycle measures the time it takes a company to convert its investments in inventory and other resources back into cash. For MSA Safety, the cash conversion cycle has shown some fluctuations over the periods provided. From March 2020 to December 2024, the trend has not been consistent, indicating potential changes in the company's operating efficiency.

The cash conversion cycle ranged from a low of 92.37 days in March 2020 to a high of 151.89 days in September 2022. A longer cash conversion cycle suggests that MSA Safety takes more time to convert its investments back into cash, potentially tying up working capital. Conversely, a shorter cycle indicates better efficiency in managing inventory, receivables, and payables.

From a peak in September 2022, the cash conversion cycle decreased to 114.31 days by December 2024. This decline suggests improvements in managing working capital and a more efficient cash flow cycle. However, it's essential to monitor this ratio over time to ensure that MSA Safety maintains optimal liquidity and operational efficiency.