Ryder System Inc (R)

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 0.75 0.74 0.74 0.82 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
Quick ratio 0.62 0.63 0.64 0.70 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
Cash ratio 0.05 0.05 0.05 0.08 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

Ryder System Inc's liquidity ratios show fluctuating trends over the years. The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, decreased from 0.85 in March 2020 to 0.62 in June 2023 before showing a slight increase to 0.75 in December 2024. This indicates that the company may have encountered challenges in meeting its immediate liabilities during certain periods.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also experienced a downward trend from 0.73 in March 2020 to 0.53 in December 2023, before improving to 0.62 in December 2024. This suggests that Ryder System Inc's ability to cover its short-term obligations without relying on inventory weakened over the years but showed some recovery by the end of 2024.

The cash ratio, which indicates the company's ability to pay off its current liabilities using only its cash and cash equivalents, varied from 0.18 in March 2020 to 0.05 in December 2024. This significant decrease suggests that Ryder System Inc may have had less cash available relative to its short-term obligations by the end of 2024, potentially posing liquidity challenges.

Overall, the liquidity ratios of Ryder System Inc demonstrate a need for the company to manage its short-term financial position more effectively to ensure it can meet its obligations as they come due.

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 -140.35 -152.84 -132.61 -149.30 -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

The cash conversion cycle of Ryder System Inc has shown fluctuating trends over the past few years. The company has consistently maintained a negative cash conversion cycle, indicating efficiency in managing its working capital.

Starting from March 31, 2020, where the cash conversion cycle was -131.92 days, the company improved its efficiency by reducing the cycle to -100.49 days by June 30, 2020. However, the cycle slightly increased to -113.24 days by September 30, 2020, before reaching the lowest point at -136.96 days by December 31, 2020.

Subsequently, there was a fluctuating pattern with the cycle increasing and decreasing over the following quarters. Notably, as of December 31, 2024, the cash conversion cycle stood at -140.35 days, reflecting Ryder System Inc's continued ability to convert its inventory and receivables into cash quickly.

Overall, the consistent negative cash conversion cycle indicates that Ryder System Inc efficiently manages its receivables, payables, and inventory, resulting in cash inflows at a faster rate than cash outflows. This efficient working capital management enables the company to operate smoothly and potentially invest in growth opportunities.