Ryder System Inc (R)

Based on the data provided, Ryder System Inc's liquidity ratios have shown some fluctuations over the years.

1. Current Ratio: The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been decreasing from 0.78 in 2020 to 0.62 in 2023, before slightly improving to 0.75 in 2024. This indicates a declining ability to meet short-term obligations with current assets.

2. Quick Ratio: The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a decreasing trend from 0.65 in 2020 to 0.53 in 2023, and then a slight improvement to 0.62 in 2024. This suggests a relatively lower ability to cover short-term liabilities without relying on inventory.

3. Cash Ratio: The cash ratio, which focuses solely on the company's ability to cover current liabilities with cash and cash equivalents, has fluctuated between 0.05 and 0.08 over the years. The decreasing trend in the cash ratio indicates a reduction in the proportion of cash available to cover immediate obligations.

Overall, the decreasing trends in the current ratio, quick ratio, and cash ratio suggest that Ryder System Inc may have faced challenges in maintaining adequate liquidity to meet its short-term obligations. Management should closely monitor and manage the company's working capital to ensure sufficient liquidity levels moving forward.

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Additional liquidity measure

The cash conversion cycle of Ryder System Inc has shown fluctuations over the years based on the provided data. As of December 31, 2020, the company had a negative cash conversion cycle of -136.96 days, indicating that it was able to convert its investments in inventory into cash quickly. This trend continued in the following years, with the cycle further decreasing to -173.16 days by December 31, 2021, before improving slightly to -120.42 days by December 31, 2022.

However, there was a slight increase in the cash conversion cycle to -148.66 days by December 31, 2023, suggesting a potential delay in cash collection compared to the previous year. Nonetheless, by December 31, 2024, the cycle improved to -140.35 days, although it remained negative, signaling efficient management of cash flow from operations.

Overall, the company has demonstrated strong working capital management practices, as indicated by the consistently negative cash conversion cycle figures, reflecting its ability to efficiently manage inventories, receivables, and payables to optimize cash flow generation.