Materion Corporation (MTRN)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 4.39 | 3.75 | 3.63 | 3.32 |
| Quick ratio | 0.81 | 0.96 | 0.90 | 0.92 | 0.96 | 1.30 | 0.16 | 0.10 | 1.16 | 0.10 | 0.15 | 0.13 | 1.52 | 1.07 | 1.53 | 2.17 | 2.28 | 2.05 | 1.74 | 1.42 |
| Cash ratio | 0.05 | 0.10 | 0.09 | 0.08 | 0.05 | 0.12 | 0.16 | 0.10 | 0.07 | 0.10 | 0.15 | 0.13 | 0.20 | 0.47 | 0.99 | 0.95 | 1.02 | 0.74 | 0.60 | 0.32 |
Materion Corp's liquidity ratios provide insight into its ability to meet short-term financial obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from 2.78 to 3.51 over the past eight quarters. This suggests that Materion Corp has a healthy level of current assets relative to current liabilities, with a general trend of maintaining a ratio above 3.
The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Materion Corp's quick ratio has fluctuated between 1.04 and 1.43 during the same period, indicating that the company may have a slightly lower ability to cover its short-term liabilities without relying on inventory assets.
Finally, the cash ratio, which measures a company's ability to cover its current liabilities with its cash and cash equivalents, has varied between 0.22 and 0.33 for Materion Corp. This ratio reflects the most conservative view of liquidity, as it focuses solely on cash holdings, with the company showing a slight increase over the quarters.
In conclusion, Materion Corp has generally maintained strong liquidity positions over the past eight quarters, as evidenced by the current ratio consistently above 2.0 and the company's ability to meet its short-term obligations with its cash and liquid assets.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 1,159.96 | 171.73 | 149.35 | 155.63 |
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales. Materion Corp's cash conversion cycle has shown some fluctuations over the past eight quarters, ranging from 124.11 days to 140.42 days.
In Q4 2023, the cash conversion cycle decreased to 129.87 days compared to Q3 2023, indicating an improvement in the company's efficiency in managing its working capital. However, this improvement was not sustained in the previous quarters of 2023, with Q2 and Q3 showing higher cash conversion cycle days.
Looking back at Q4 2022 and Q1 2023, Materion Corp managed to reduce its cash conversion cycle days to 126.11 and 124.11, respectively, suggesting effective management of inventory and receivables during that period.
Overall, Materion Corp's cash conversion cycle has displayed some variability, and it would be important for the company to focus on maintaining a shorter cycle to optimize its working capital management and enhance its liquidity position.