Metallus Inc (MTUS)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.71 | 2.64 | 3.05 | 2.85 | 2.66 | 2.98 | 3.04 | 2.58 | 2.50 | 2.32 | 2.18 | 1.94 | 1.90 | 1.98 | 1.69 | 2.09 | 2.87 | 3.58 | 3.41 | 3.11 |
| Quick ratio | 1.66 | 1.59 | 1.74 | 1.62 | 1.53 | 1.81 | 1.89 | 1.53 | 1.52 | 1.44 | 1.25 | 1.00 | 0.93 | 0.92 | 0.77 | 0.82 | 1.12 | 0.93 | 1.03 | 1.08 |
| Cash ratio | 1.16 | 1.13 | 1.09 | 1.01 | 0.98 | 1.38 | 1.37 | 0.92 | 0.97 | 1.04 | 0.71 | 0.49 | 0.51 | 0.57 | 0.37 | 0.44 | 0.46 | 0.24 | 0.15 | 0.13 |
Metallus Inc's liquidity ratios have shown some variations over the past several quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally been above 2.0, indicating a comfortable level of liquidity. It peaked at 3.05 in September 2023 before declining slightly to 2.54 in March 2024.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also been generally healthy, staying above 1.0 in most quarters. It reached a high of 1.89 in September 2022, but has since fluctuated within the range of 1.44 to 1.74.
The cash ratio, which is the most conservative liquidity measure as it considers only cash and cash equivalents, has shown more volatility. It peaked at 1.38 in December 2022 but has generally been above 1.0, indicating a solid cash position to cover immediate obligations.
Overall, Metallus Inc's liquidity ratios suggest that the company has maintained a strong ability to meet its short-term financial commitments. However, the fluctuations in the ratios over time may indicate changes in the company's cash management practices or working capital efficiency that warrant further investigation.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 59.25 | 58.54 | 71.77 | 70.67 | 58.37 | 46.33 | 49.47 | 62.93 | 55.60 | 50.46 | 69.37 | 73.31 | 69.05 | 64.18 | 72.34 | 80.70 | 75.42 | 83.24 | 81.04 | 82.14 |
The cash conversion cycle of Metallus Inc has fluctuated over the past few quarters. The cycle indicates the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
- The cycle ranged from a low of 46.33 days in December 2022 to a high of 83.24 days in December 2019, reflecting significant variability in the company's operating efficiency over time.
- Generally, a shorter cash conversion cycle is preferred as it signifies that the company is efficiently managing its working capital and generating cash flow from its operations quickly.
- The trend in the cash conversion cycle for Metallus Inc has not shown a consistent pattern over the quarters, suggesting possible challenges in managing inventory, collecting receivables, and paying off payables in a timely manner.
- Management may need to focus on streamlining operational processes, improving inventory management, and optimizing credit policies to reduce the cycle duration and enhance overall liquidity.
- It is essential for the company to closely monitor and analyze the factors contributing to the fluctuations in the cash conversion cycle to ensure sustainable cash flow generation and operational efficiency in the long term.