ODP Corp (ODP)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.99 1.00 0.98 0.98 1.03 1.11 1.06 1.04 1.05 1.32 1.15 1.15 1.13 1.08 1.18 1.15 1.11 1.10 1.07 1.08
Quick ratio 0.52 0.53 0.48 0.19 0.51 0.56 0.52 0.57 0.45 0.57 0.65 0.68 0.65 0.61 0.67 0.72 0.68 0.74 0.42 0.48
Cash ratio 0.23 0.22 0.19 0.19 0.22 0.25 0.22 0.28 0.23 0.35 0.33 0.35 0.35 0.32 0.36 0.36 0.23 0.19 0.14 0.19

The liquidity ratios of ODP Corp indicate the company's ability to meet its short-term obligations with its current assets.

The current ratio has shown some volatility over the past few quarters, with a current ratio below 1 in the last few quarters, indicating that the company may have difficulty meeting its short-term liabilities with its current assets alone. However, the current ratio improved slightly in the most recent quarter to 1.00, which is better than the previous three quarters.

The quick ratio, which is a more stringent measure of liquidity since it excludes inventory from current assets, has also been fluctuating. The quick ratio has been below 1 for most of the quarters, indicating that the company may struggle to meet its short-term obligations without relying on inventory. The quick ratio improved slightly in the most recent quarter to 0.53, but it is still relatively low.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has also been fluctuating but generally below 0.5, implying that the company has a limited amount of cash relative to its current liabilities. The cash ratio improved in the most recent quarter to 0.22, but it remains relatively low.

Overall, ODP Corp's liquidity ratios show some weakness, particularly in the quick and cash ratios, suggesting that the company may face challenges in meeting its short-term obligations with its current liquid assets. Investors and stakeholders should continue to monitor these ratios to assess the company's liquidity position.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 23.67 20.89 20.14 71.05 23.48 27.81 27.55 18.02 15.50 18.15 25.15 25.44 23.69 22.62 25.15 25.89 49.19 58.80 31.46 28.88

The cash conversion cycle for ODP Corp fluctuated over the periods analyzed. A lower cash conversion cycle indicates a more efficient management of working capital.

Looking at the trend, in the most recent quarter, the cash conversion cycle was 23.67 days, which was slightly higher than the previous quarter's 20.89 days. However, it was significantly lower compared to the peak observed in the prior quarter at 71.05 days.

The company managed to improve its cash conversion cycle from the fourth quarter of 2022 to the first quarter of 2023, showcasing better efficiency in managing cash, inventory, and receivables. However, there was a slight increase in the cycle in the second and third quarters of 2023, suggesting potential challenges in working capital management.

It is essential for ODP Corp to continue monitoring and optimizing its cash conversion cycle to ensure efficient utilization of resources and improved liquidity management over time.