Enviri Corporation (NVRI)
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 | |
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Current ratio | 1.25 | 1.30 | 1.32 | 1.36 | 1.26 | 1.40 | 1.36 | 1.28 | 1.29 | 1.35 | 1.32 | 1.50 | 1.45 | 1.53 | 1.56 | 1.63 | 1.52 | 1.51 | 1.56 | 1.51 |
Quick ratio | 0.16 | 0.18 | 0.18 | 0.19 | 0.19 | 0.17 | 0.15 | 0.15 | 0.14 | 0.14 | 0.16 | 0.14 | 0.14 | 0.13 | 0.14 | 0.15 | 0.14 | 0.16 | 0.16 | 0.15 |
Cash ratio | 0.16 | 0.18 | 0.18 | 0.19 | 0.19 | 0.17 | 0.15 | 0.15 | 0.14 | 0.14 | 0.16 | 0.14 | 0.14 | 0.13 | 0.14 | 0.15 | 0.14 | 0.16 | 0.16 | 0.15 |
The current ratio of Enviri Corporation has shown fluctuations over the years but generally indicates a solid ability to cover its short-term obligations with its current assets. The ratio has consistently been above 1, which suggests that the company has more than enough current assets to cover its current liabilities.
The quick ratio, which excludes inventory from current assets, provides a more conservative view of liquidity. Enviri Corporation's quick ratio has been relatively low, indicating a lower ability to cover immediate liabilities without relying on selling inventory. The ratio has fluctuated over time but has generally been below 1, highlighting potential liquidity concerns.
The cash ratio, which focuses solely on cash and cash equivalents, has also been low for Enviri Corporation. This implies the company may have difficulty meeting its short-term obligations using only its readily available cash resources. The ratio has remained consistently below 1, indicating limited liquidity from cash reserves alone.
In summary, while the current ratio reflects Enviri Corporation's overall ability to meet short-term obligations, the quick ratio and cash ratio highlight potential liquidity challenges due to low levels of liquid assets. Monitoring these ratios closely can help assess the company's liquidity position and its ability to meet financial obligations in the short term.
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 | ||
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Cash conversion cycle | days | 34.70 | 39.14 | 38.57 | 40.67 | 19.44 | 19.34 | 19.55 | 19.61 | 19.12 | 18.94 | 18.51 | 17.02 | 15.20 | 34.65 | 33.93 | 39.01 | 42.08 | 44.07 | 48.45 | 50.66 |
The cash conversion cycle of Enviri Corporation has shown fluctuations over the periods outlined in the data provided. The trend has been decreasing from March 31, 2020, where it was at 50.66 days, to December 31, 2021, where it notably decreased to 15.20 days. This significant reduction indicates that the company has been more efficient in converting its investments in inventory and other resources into cash.
However, there seems to have been a slight increase in the cash conversion cycle from March 31, 2022, to June 30, 2024, where it fluctuated between 17.02 days to 39.14 days. This increase may suggest that the company's management of its working capital, including inventory turnover, accounts receivable collection, and accounts payable, might have been less efficient during these periods.
Furthermore, the cash conversion cycle remained relatively stable around 19 days from March 31, 2024, to December 31, 2024. This stabilization could indicate that the company has been able to maintain a consistent level of efficiency in its cash management activities during this period.
Overall, a lower cash conversion cycle indicates that Enviri Corporation is able to generate cash quickly from its operations, while a higher cycle may signify potential cash flow challenges or inefficiencies in managing working capital. It is important for the company to monitor and potentially improve its cash conversion cycle to ensure optimal cash flow management and operational efficiency.