Materion Corporation (MTRN)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 2.78 | 2.89 | 3.07 | 3.66 | 4.39 |
| Quick ratio | 0.81 | 0.96 | 1.16 | 1.52 | 2.28 |
| Cash ratio | 0.05 | 0.05 | 0.07 | 0.20 | 1.02 |
Materion Corp's liquidity ratios demonstrate a general decreasing trend over the past five years. The current ratio, which reflects the company's ability to cover short-term obligations with current assets, has decreased from 4.02 in 2019 to 2.78 in 2023. This may indicate a slight weakening in the company's ability to meet its short-term obligations with its current assets.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a decline from 2.46 in 2019 to 1.05 in 2023. This suggests that Materion Corp may be less able to cover its short-term liabilities using its most liquid assets.
The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has fluctuated over the years, with a decrease from 1.20 in 2019 to 0.29 in 2023. This could indicate a decreased ability to settle immediate obligations solely with cash and cash equivalents.
Overall, the declining trend in Materion Corp's liquidity ratios suggests that the company may be facing challenges in maintaining its short-term liquidity position. It is important for stakeholders to monitor these metrics closely to assess the company's ability to meet its financial obligations in the near term.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 119.79 | 116.70 | 125.51 | 113.22 | 111.59 |
The cash conversion cycle of Materion Corp has exhibited fluctuations over the past five years. In 2023, the cycle was 129.87 days, slightly higher compared to the previous year at 126.11 days. This indicates that Materion Corp took a bit longer to convert its investments in inventory and accounts receivable into cash in 2023.
Furthermore, compared to 2021 where the cash conversion cycle was 135.79 days, there was a slight improvement in 2023. However, looking back at 2020 and 2019, the cycle was shorter at 124.06 days and 105.64 days respectively, indicating a more efficient cash conversion process in these years.
Overall, Materion Corp's cash conversion cycle has shown some variations, but it is essential for the company to continue monitoring and optimizing this cycle to ensure efficient management of their working capital and cash flow.