Nexstar Broadcasting Group Inc (NXST)

The liquidity ratios of Nexstar Media Group Inc over the past five years show a relatively stable financial position in terms of its ability to meet short-term obligations.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from 1.43 to 1.81 during this period. This indicates that Nexstar Media Group Inc has had an acceptable level of liquidity, with the ability to cover its short-term obligations with its current assets, although there has been some variation from year to year.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Nexstar Media Group Inc has maintained a range of 1.41 to 1.79 for the quick ratio over the five-year period, suggesting a consistent ability to meet short-term liabilities without relying on the sale of inventory.

The cash ratio, which focuses solely on the company's ability to cover its short-term liabilities with its cash and cash equivalents, has fluctuated between 0.37 and 0.58 over the past five years. This ratio indicates that Nexstar Media Group Inc has had a varying level of liquidity solely from its cash holdings, with the ability to cover less than half of its short-term liabilities with cash alone in some years.

Overall, based on these liquidity ratios, Nexstar Media Group Inc has maintained a relatively sound liquidity position over the past five years, with the current and quick ratios showing consistent coverage of short-term obligations, while the cash ratio has experienced some fluctuations. It is important for the company to continue monitoring and managing its liquidity to ensure it can meet its obligations as they come due.

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Additional liquidity measure

The cash conversion cycle of Nexstar Media Group Inc has shown varying trends over the past five 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.

In 2019, Nexstar's cash conversion cycle was significantly high at 106.15 days, indicating that the company took a relatively long time to convert its resources into cash. However, there has been a notable improvement in the efficiency of the company's cash conversion cycle in the subsequent years.

From 2020 to 2021, the cash conversion cycle decreased from 27.03 days to 31.54 days, indicating a slight slowdown in the cycle. However, in 2022, there was a modest increase to 39.61 days, and further to 41.18 days in 2023, suggesting that Nexstar may be taking longer to convert its resources into cash in recent years.

Overall, while Nexstar Media Group Inc has shown some improvement in its cash conversion cycle efficiency compared to 2019, there has been fluctuation in recent years, indicating potential challenges or shifts in the company's operational efficiency and working capital management.