Ryder System Inc (R)
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 | 0.62 | 0.53 | 0.62 | 0.60 | 0.66 | 0.73 | 0.67 | 0.59 | 0.77 | 0.58 | 0.59 | 0.67 | 0.78 | 0.81 | 0.77 | 0.85 | 0.59 | 0.62 | 0.59 | 0.57 |
| Quick ratio | 0.53 | 0.45 | 0.52 | 0.52 | 0.57 | 0.65 | 0.60 | 0.51 | 0.53 | 0.50 | 0.51 | 0.56 | 0.65 | 0.73 | 0.70 | 0.73 | 0.50 | 0.53 | 0.51 | 0.47 |
| Cash ratio | 0.06 | 0.04 | 0.06 | 0.07 | 0.08 | 0.14 | 0.12 | 0.06 | 0.07 | 0.06 | 0.09 | 0.04 | 0.07 | 0.27 | 0.30 | 0.18 | 0.03 | 0.03 | 0.04 | 0.02 |
Ryder System, Inc.'s liquidity ratios have shown a declining trend over the past eight quarters. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, decreased from 0.66 in Q4 2022 to 0.62 in Q4 2023. This indicates that the company may be facing challenges in meeting its short-term obligations.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, followed a similar trend. It decreased from 0.64 in Q4 2022 to 0.62 in Q4 2023, indicating a potential decrease in the company's ability to meet its short-term obligations without relying on inventory.
The cash ratio, which reflects the company's ability to cover its short-term liabilities with cash and cash equivalents, also showed a downward trend. It decreased from 0.15 in Q4 2022 to 0.12 in Q1 2022, suggesting a decline in the company's cash position relative to its short-term obligations.
Overall, the declining trend in Ryder System, Inc.'s liquidity ratios raises concerns about its ability to meet its short-term financial commitments. This may indicate a need for the company to improve its cash management practices and working capital efficiency to enhance its 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 | -148.66 | -154.79 | -163.07 | -169.03 | -124.97 | -167.29 | -204.42 | -195.57 | -173.16 | -174.74 | -165.10 | -133.61 | -136.96 | -113.24 | -100.49 | -131.92 | -151.87 | -206.92 | -218.53 | -252.03 |
The cash conversion cycle of Ryder System, Inc. has been showing a fluctuating trend over the past eight quarters. In Q4 2023, the company's cash conversion cycle increased to 21.04 days from 18.76 days in the previous quarter. This implies that Ryder took longer to convert its investments in inventory and other resources into cash during this period.
Compared to the same quarter in the previous year (Q4 2022), the cash conversion cycle has slightly decreased, indicating a potential improvement in the management of working capital efficiency. However, the current level is still higher than in Q2 2023 and Q1 2023, signifying a need for further optimization of its cash flow operations.
Overall, the company should continue monitoring and managing its cash conversion cycle effectively to ensure efficient utilization of resources and to enhance its liquidity position.