Materion Corporation (MTRN)

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 3.19 3.15 3.25 2.91 2.78 3.27 2.99 2.85 2.89 3.51 3.36 3.34 3.07 3.22 3.20 3.36 3.66 2.00 2.44 4.21
Quick ratio 0.93 0.92 0.91 0.81 0.82 0.96 0.90 0.92 0.97 1.30 0.16 0.10 1.16 0.10 0.15 0.13 1.52 1.07 1.53 2.17
Cash ratio 0.07 0.07 0.10 0.07 0.07 0.10 0.09 0.08 0.07 0.12 0.16 0.10 0.07 0.10 0.15 0.13 0.20 0.47 0.99 0.95

Materion Corporation's liquidity ratios show a fluctuating trend over the reported periods. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has remained generally strong, ranging from a low of 2.00 to a high of 4.21. A current ratio above 2 indicates that Materion has sufficient current assets to cover its short-term liabilities.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has shown more variability. It has dipped below 1 several times, indicating potential difficulties in meeting immediate obligations without relying on inventory liquidation. However, the quick ratio has generally improved over time, suggesting better liquidity management.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents alone, has also shown improvement in most recent periods, although it remains relatively low compared to the other liquidity ratios. This indicates that Materion may have limited ability to cover its short-term obligations with cash on hand.

Overall, Materion Corporation's liquidity ratios suggest that the company has maintained a solid ability to cover its short-term obligations, with improvements in liquidity over time. However, there are fluctuations in the quick and cash ratios that warrant attention to ensure continued smooth operations and financial stability.

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 149.79 130.05 126.56 126.57 119.79 128.32 119.77 114.80 116.70 105.14 99.33 156.36 626.91 1,067.00 668.75 511.68 581.15 678.51 729.08 777.48

The cash conversion cycle of Materion Corporation has fluctuated over the periods analyzed. In general, the cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales. A shorter cash conversion cycle indicates more efficient management of working capital.

Looking at the data provided:
- The cash conversion cycle ranged from a high of 1,067.00 days on September 30, 2021, to a low of 99.33 days on June 30, 2022.
- There was a significant improvement in efficiency from September 30, 2021, to March 31, 2022, with the cycle decreasing from 1,067.00 days to 156.36 days.
- The cycle continued to improve thereafter, reaching a low of 99.33 days on June 30, 2022.
- However, there was an increase in the cash conversion cycle to 130.05 days on September 30, 2024, indicating a potential slowdown in converting resources to cash.

Overall, Materion Corporation has shown fluctuations in its cash conversion cycle, with periods of notable efficiency followed by periods of less efficient working capital management. It is important for the company to focus on maintaining an optimal balance between inventory management, accounts receivable collection, and accounts payable turnover to improve its cash conversion cycle and overall liquidity position.