PPG Industries Inc (PPG)

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 1.47 1.48 1.49 1.68 1.52 1.52 1.50 1.47 1.42 1.34 1.36 1.43 1.41 1.52 1.35 1.36 1.41 1.49 1.43 1.40
Quick ratio 0.96 0.96 0.94 1.04 0.94 0.94 0.93 0.91 0.89 0.86 0.88 0.97 0.96 1.07 0.95 0.91 0.92 0.99 0.92 0.88
Cash ratio 0.31 0.25 0.24 0.30 0.24 0.22 0.19 0.20 0.22 0.24 0.24 0.38 0.40 0.45 0.44 0.37 0.29 0.33 0.22 0.18

PPG Industries, Inc.'s liquidity ratios provide insight into the company's ability to meet its short-term financial obligations. The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has displayed some fluctuation. Over the past eight quarters, the current ratio has ranged from 1.47 to 1.68, indicating that PPG has generally maintained a healthy level of current assets relative to its current liabilities.

The quick ratio, also known as the acid-test ratio, excludes inventory from current assets to provide a more stringent measure of liquidity. PPG's quick ratio has ranged from 1.00 to 1.15 over the same period, suggesting that the company may face minor challenges in meeting its short-term obligations without relying on inventory.

The cash ratio, which focuses solely on the most liquid assets, shows PPG's ability to cover its current liabilities with cash and cash equivalents. The trend of PPG's cash ratio has fluctuated between 0.28 and 0.41. The ratios generally indicate that the company holds an adequate level of cash to cover its short-term liabilities.

In conclusion, while PPG Industries, Inc. has maintained relatively stable liquidity ratios over the past eight quarters, there may be areas to monitor, particularly in terms of quick ratios, to ensure the company can continue to meet its short-term financial obligations effectively.

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 51.04 125.95 137.81 136.14 62.46 129.03 136.55 134.63 53.96 138.74 149.12 140.96 54.23 133.04 127.76 126.84 54.50 130.22 153.96 175.43

The cash conversion cycle of PPG Industries, Inc. has shown fluctuations over the past four quarters. In Q4 2023, the company's cash conversion cycle decreased significantly to 49.12 days from 147.59 days in the previous quarter. This substantial reduction indicates that PPG Industries was able to efficiently convert its investments in inventory and accounts receivable into cash during this period.

Comparing Q4 2023 to the same quarter of the previous year, there was also a notable improvement from 59.55 days to 49.12 days, suggesting better management of working capital. Overall, the trend in the cash conversion cycle appears to be positive for PPG Industries, as the company has been able to reduce the time it takes to convert resources into cash, which is a favorable indicator of operational efficiency and liquidity management.