PPG Industries Inc (PPG)

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 1.31 1.58 1.49 1.55 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
Quick ratio 0.27 0.26 0.23 0.25 0.31 0.25 0.24 0.30 0.24 0.22 0.19 0.20 0.23 0.24 0.24 0.38 0.40 0.45 0.44 0.37
Cash ratio 0.27 0.26 0.23 0.25 0.31 0.25 0.24 0.30 0.24 0.22 0.19 0.20 0.23 0.24 0.24 0.38 0.40 0.45 0.44 0.37

The current ratio of PPG Industries Inc has shown a mostly stable trend over the past few years, ranging between 1.31 to 1.68. This indicates that the company has a healthy level of current assets relative to its current liabilities, providing some assurance that it can meet its short-term obligations.

On the other hand, the quick ratio of PPG Industries Inc has been fluctuating more significantly, ranging from 0.19 to 0.45. This shows that the company's ability to meet its immediate short-term liabilities with its most liquid assets (excluding inventory) has seen some variability over the periods.

The cash ratio, which is a more stringent measure of liquidity, has also shown fluctuations between 0.19 to 0.45. This shows how much of the company's current liabilities can be covered by its cash and cash equivalents alone.

Overall, while the current ratio of PPG Industries Inc indicates a relatively stable liquidity position, the more stringent quick and cash ratios highlight some variability in the company's ability to quickly cover its short-term obligations with its most liquid assets. Further monitoring and analysis may be necessary to assess the company's liquidity position accurately.

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 70.55 77.40 77.98 79.23 72.25 74.67 83.87 86.29 74.74 78.82 81.75 82.80 77.04 84.33 90.01 86.24 81.43 78.77 78.79 79.94

The cash conversion cycle of PPG Industries Inc has shown some fluctuations over the periods analyzed. The cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales to customers. A lower cash conversion cycle is generally favorable as it indicates that the company is able to efficiently manage its working capital.

From the data provided, we observe that the cash conversion cycle for PPG Industries Inc ranged from as high as 90.01 days in June 2021 to as low as 70.55 days in December 2024. Over the years, the company has made efforts to reduce its cash conversion cycle, with noticeable improvements seen in certain periods.

The trend shows some variability with occasional spikes, which could indicate challenges in managing working capital efficiently during those periods. However, the general downward trend from 2021 to 2024 is a positive sign as it suggests that PPG Industries Inc has been able to streamline its operational efficiency in managing its cash flows, inventory, and accounts receivable.

It is important for the company to continue monitoring and optimizing its cash conversion cycle to ensure that it remains at an optimal level, balancing the need to meet customer demand with efficient management of working capital. This analysis provides insights into the liquidity and operational efficiency of PPG Industries Inc in converting its resources into cash.