Metallus, Inc (MTUS)

Metallus, Inc's liquidity ratios reflect its ability to meet short-term obligations and manage cash flow effectively. The current ratio, a measure of the company's ability to cover current liabilities with current assets, has shown a positive trend over the past few years, indicating improving liquidity. The ratio consistently remained above 1, which is considered healthy, and showed a steady increase from 2.87 on March 31, 2020, to 3.11 on June 30, 2024.

The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also exhibited a positive trend. The ratio increased from 0.46 on March 31, 2020, to 1.40 on June 30, 2024, indicating a strong ability to meet short-term obligations without relying on the sale of inventory.

Additionally, the cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, also demonstrated a positive trend. The ratio increased from 0.46 on March 31, 2020, to 1.40 on June 30, 2024, showing a consistent improvement in the company's cash position over the years.

Overall, Metallus, Inc's liquidity ratios indicate a healthy financial position with improving liquidity and a strong ability to meet its short-term obligations.

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Additional liquidity measure

The cash conversion cycle of Metallus, Inc has shown some fluctuations over the periods analyzed. The cycle represents the time it takes for the company to convert its resources invested in inventory into cash flows from sales.

From March 31, 2020, to June 30, 2020, the cash conversion cycle increased slightly from 80.13 days to 80.87 days, indicating a marginal slowdown in the process. However, by September 30, 2020, the cycle decreased to 73.71 days, reflecting a more efficient conversion of inventory to sales proceeds.

Subsequently, the cycle increased to 79.88 days by December 31, 2020, and continued to rise to 91.77 days by March 31, 2021, reaching a peak. This extended cycle period suggests potential issues with inventory management or delays in accounts receivable collections.

The trend then reversed, with the cycle declining to 72.32 days by December 31, 2021, and maintaining a relatively stable range up to June 30, 2022. Notably, by September 30, 2022, it decreased significantly to 61.34 days, indicating improvements in managing inventory levels and receivables turnover.

However, the cycle increased to 83.49 days by June 30, 2023, before decreasing slightly to 70.77 days by December 31, 2023. From there, the cycle increased again to 81.34 days by December 31, 2024, suggesting potential challenges in managing inventory and cash flow.

Overall, the analysis of Metallus, Inc's cash conversion cycle shows fluctuations in efficiency over the periods provided, reflecting the company's ability to manage its working capital effectively. Further monitoring and improvement in inventory management and receivables collection processes may help optimize the cash conversion cycle in the future.