Newell Brands Inc (NWL)

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 1.14 0.99 0.98 1.15 1.16 1.24 1.25 1.23 1.32 1.25 1.03 1.39 1.28 1.24 1.23 1.30 1.28 1.51 1.47 1.33
Quick ratio 0.08 0.15 0.11 0.13 0.11 0.13 0.10 0.08 0.09 0.15 0.07 0.11 0.13 0.13 0.17 0.20 0.27 0.28 0.21 0.16
Cash ratio 0.08 0.15 0.11 0.13 0.11 0.13 0.10 0.08 0.09 0.15 0.07 0.11 0.13 0.13 0.17 0.20 0.27 0.28 0.21 0.16

Newell Brands Inc's current ratio, a measure of short-term liquidity, fluctuated over the analyzed period, generally staying above 1, which indicates the company's ability to meet its short-term obligations. However, a downward trend was observed from June 2022 to September 2024, reaching a low of 0.98 in June 2024 before recovering slightly to 1.14 by December 2024.

The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also showed variability but generally remained low throughout the period. The ratio ranged from a low of 0.07 in June 2022 to a high of 0.28 in September 2020, indicating potential challenges in meeting immediate obligations with liquid assets.

The cash ratio, representing the most conservative liquidity measure, mirrored the pattern seen in the quick ratio, with values fluctuating between 0.07 and 0.28. This suggests that Newell Brands Inc may have limited cash reserves relative to its current liabilities, posing a risk in covering short-term obligations solely with available cash.

Overall, the company's liquidity position based on these ratios indicates a need for careful monitoring, particularly given the downward trend in current ratio and the generally low values of quick and cash ratios. Investors and stakeholders should assess these ratios alongside other financial metrics to gain a comprehensive understanding of Newell Brands Inc's liquidity risk.

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 101.87 117.36 112.94 111.57 97.52 107.98 114.37 129.45 121.08 133.17 126.69 113.54 99.95 107.43 105.51 105.23 94.81 99.97 102.10 102.56

The cash conversion cycle of Newell Brands Inc has shown fluctuations over the periods presented.

From March 31, 2020, to December 31, 2021, the company's cash conversion cycle gradually improved from 102.56 days to 99.95 days, indicating efficiency in managing its cash flow from operations, inventory, and receivables. This improvement suggests that the company was able to reduce the time taken to convert its investments in inventory and receivables into cash.

However, from March 31, 2022, to December 31, 2024, there was a noticeable increase in the cash conversion cycle from 113.54 days to 101.87 days, indicating a potential slowdown in the company's ability to convert its resources into cash. This increase may be attributed to higher inventory levels or longer collection periods for receivables, impacting the company's liquidity and operational efficiency.

Overall, monitoring the trend in the cash conversion cycle is crucial for evaluating Newell Brands Inc's working capital management and operational performance. Investors and stakeholders should pay close attention to any significant deviations from the historical averages to assess the company's financial health and efficiency in managing its cash flow.