Owens Corning Inc (OC)

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 1.47 1.44 1.37 1.76 1.69 2.16 2.07 1.86 1.69 1.77 1.87 1.72 1.82 1.86 1.91 1.87 1.81 1.95 1.87 1.63
Quick ratio 0.70 0.77 0.71 1.17 1.12 1.44 1.30 1.11 0.98 1.04 1.11 1.08 1.12 1.22 1.29 1.21 1.14 1.23 1.13 0.81
Cash ratio 0.16 0.19 0.09 0.55 0.69 0.72 0.53 0.39 0.52 0.39 0.43 0.38 0.57 0.55 0.54 0.41 0.50 0.48 0.42 0.16

Owens Corning Inc's current ratio, which reflects the company's ability to cover its short-term liabilities with its short-term assets, has shown some fluctuations over the years. Starting at 1.63 in March 2020, the ratio generally increased until September 2023, when it reached its peak at 2.16, indicating a strong short-term liquidity position. However, the ratio then decreased to 1.47 by December 2024, suggesting a slight weakening in the company's short-term liquidity position.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, followed a similar trend to the current ratio. Starting at 0.81 in March 2020, it increased steadily until September 2023, reaching 1.44, before falling to 0.70 by December 2024.

The cash ratio, which represents the company's ability to cover its current liabilities with its cash and cash equivalents, also showed fluctuations. Starting at 0.16 in March 2020, the ratio increased until September 2023, peaking at 0.72, before decreasing to 0.16 by December 2024.

Overall, Owens Corning Inc's liquidity ratios indicate some volatility in its short-term liquidity position, with periods of strengthening followed by slight declines. Monitoring these ratios is important for assessing the company's ability to meet its short-term financial obligations.

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 48.87 67.77 74.22 55.71 36.32 54.67 59.71 59.15 35.74 50.35 49.98 47.18 39.93 112.27 116.22 119.64 46.93 115.23 118.31 118.33

The cash conversion cycle (CCC) of Owens Corning Inc provides insight into the efficiency of the company's working capital management. The CCC is the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.

Analyzing the data provided, we can observe the following trends in Owens Corning's CCC:

- Owens Corning's CCC fluctuated over the period, ranging from a high of 118.33 days in March 2020 to a low of 35.74 days in December 2022.
- Generally, a lower CCC indicates that the company is more efficient in managing its working capital and converting inventory and receivables into cash.
- A shorter cash conversion cycle suggests that the company is able to collect payments from customers quickly, manage inventory levels effectively, and pay its suppliers in a timely manner.
- Conversely, a longer cash conversion cycle may indicate inefficiencies in managing working capital, potentially leading to liquidity issues and increased financing costs.

Overall, based on the data provided, Owens Corning Inc has made improvements in its cash conversion cycle over time, with a decreasing trend from 2020 to 2024. Maintaining a relatively low and stable CCC is essential for the company to optimize its cash flow and operational efficiency.