Mettler-Toledo International Inc (MTD)

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 1.02 1.01 0.92 1.07 1.04 1.12 1.24 1.28 1.20 1.13 1.18 1.20 1.11 1.24 1.25 1.28 1.26 1.37 1.41 1.77
Quick ratio 0.64 0.60 0.55 0.64 0.62 0.66 0.73 0.73 0.70 0.63 0.66 0.68 0.65 0.79 0.79 0.81 0.82 0.88 0.88 1.24
Cash ratio 0.05 0.06 0.06 0.06 0.06 0.07 0.08 0.09 0.08 0.10 0.10 0.11 0.09 0.18 0.15 0.13 0.11 0.20 0.18 0.48

The liquidity ratios of Mettler-Toledo International Inc indicate its ability to meet short-term obligations and operational needs.

- The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has been above 1 for the most part of the reported periods. However, there has been a declining trend with the ratio decreasing from 1.77 on March 31, 2020, to 0.92 on June 30, 2024, before slightly recovering to 1.02 on December 31, 2024. This could indicate potential challenges in maintaining liquidity in the short-term.

- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a decreasing trend over the reported periods. The ratio declined from 1.24 on March 31, 2020, to 0.55 on June 30, 2024. This suggests a potential concern regarding the company's ability to meet its immediate obligations without relying on inventory liquidation.

- The cash ratio, which represents the proportion of cash and cash equivalents to cover current liabilities, has been relatively low throughout the periods, ranging from 0.05 to 0.48. While the ratio has remained consistently low, it indicates that the company may not have sufficient cash reserves to cover its short-term obligations without relying on other sources of liquidity.

Overall, the liquidity ratios of Mettler-Toledo International Inc signal a need for careful monitoring and management of its short-term liquidity position to ensure the company can meet its financial obligations effectively.

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 94.60 103.23 101.73 106.29 105.36 105.65 110.84 115.80 108.89 107.96 103.52 102.08 96.98 100.44 98.46 100.62 104.87 106.18 103.55 99.61

The cash conversion cycle of Mettler-Toledo International Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

The cash conversion cycle for Mettler-Toledo has ranged from a low of 94.60 days on December 31, 2024, to a high of 115.80 days on March 31, 2023. A lower cash conversion cycle indicates that the company is able to convert its investments into cash more quickly, which is generally considered favorable as it shows efficient working capital management.

It is important to note that a longer cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers, which could potentially tie up cash flow and impact the company's liquidity position.

Overall, the trend of the cash conversion cycle for Mettler-Toledo International Inc appears to have fluctuated over the period under review, and it would be important for the company to closely monitor and manage its working capital components to optimize its cash conversion cycle for improved financial performance.