Minerals Technologies Inc (MTX)

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 2.84 2.46 2.46 2.49 2.40 2.31 2.29 2.17 2.15 2.18 2.29 2.40 2.45 2.43 3.69 3.62 3.50 3.85 1.74 2.35
Quick ratio 0.85 0.70 0.70 0.72 0.70 0.59 0.54 0.50 0.51 0.46 0.51 0.64 0.73 0.74 1.39 1.30 1.26 1.40 0.47 0.57
Cash ratio 0.85 0.70 0.70 0.72 0.70 0.59 0.54 0.50 0.51 0.46 0.51 0.64 0.73 0.74 1.39 1.30 1.26 1.40 0.47 0.57

Minerals Technologies Inc's liquidity ratios show a relatively stable current ratio over the period under review, ranging from 1.74 to 3.85, with the latest ratio standing at 2.84 as of December 31, 2024. This indicates the company's ability to meet its short-term obligations with its current assets.

In terms of the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, the company's ratio fluctuates over the period, ranging from 0.46 to 1.40. The quick ratio was highest at 1.40 on September 30, 2020, and lowest at 0.46 on September 30, 2022. As of December 31, 2024, the quick ratio stood at 0.85, indicating the company's ability to cover immediate liabilities with its most liquid assets.

The cash ratio, which is the most conservative liquidity measure as it considers only cash and cash equivalents, shows a similar pattern to the quick ratio. The cash ratio ranges from 0.46 to 1.40 over the period, with the highest ratio seen on September 30, 2020, and the lowest on September 30, 2022. As of December 31, 2024, the cash ratio was 0.85, showing Minerals Technologies Inc's ability to cover its short-term obligations with its cash reserves.

Overall, the trend in Minerals Technologies Inc's liquidity ratios suggests that the company maintains a solid liquidity position, with the ability to meet its short-term obligations comfortably, as indicated by the current, quick, and cash ratios.

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 79.49 78.82 75.50 72.73 71.43 73.61 76.95 80.00 76.67 77.56 79.64 82.97 77.12 75.63 74.02 74.02 76.17 77.53 78.81 69.00

Minerals Technologies Inc's cash conversion cycle has been fluctuating over the past few years. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From the data provided, we can see that the company's cash conversion cycle ranged from a low of 69.00 days on March 31, 2020, to a high of 82.97 days on March 31, 2022. A lower cash conversion cycle indicates that the company is taking less time to sell inventory, collect receivables, and pay suppliers, which is generally a positive sign as it signifies efficient working capital management.

Despite fluctuations, it is essential to monitor the trend of the cash conversion cycle over time. A consistently increasing cash conversion cycle could indicate potential issues in managing working capital, such as slow inventory turnover or delays in collecting receivables, which may lead to cash flow challenges.

Overall, keeping a close eye on Minerals Technologies Inc's cash conversion cycle and identifying factors contributing to any changes can provide valuable insights into the company's operational efficiency and financial health.