Gibraltar Industries Inc (ROCK)

Gibraltar Industries Inc.'s liquidity ratios indicate the company's ability to meet its short-term obligations efficiently. The current ratio has shown an improving trend over the past five years, increasing from 1.91 in 2019 to 2.05 in 2023. This suggests that the company's current assets are 2.05 times its current liabilities, providing a comfortable buffer to cover short-term obligations.

The quick ratio, which excludes inventory from current assets, has also been on an upward trend, rising from 1.56 in 2019 to 1.51 in 2023. This indicates that the company has a stronger ability to meet its immediate liabilities with its most liquid assets.

However, the cash ratio paints a slightly different picture, showing fluctuations over the years. The cash ratio in 2023 stands at 0.52, significantly higher than the 0.17 ratio in 2022. This could indicate that the company has increased its cash reserves relative to its current liabilities, which may provide better flexibility in meeting its short-term obligations.

Overall, the improving current and quick ratios suggest Gibraltar Industries Inc. has been managing its liquidity well and has a strong ability to cover its short-term obligations, with the recent increase in the cash ratio further enhancing its liquidity position.

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Additional liquidity measure

The cash conversion cycle of Gibraltar Industries Inc. has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 69.69 days, showing an improvement from 2022 when it was 78.75 days. This indicates that the company took fewer days to convert its investment in inventory and accounts receivable into cash during the year.

Comparing to 2021, the cash conversion cycle increased in 2022 but decreased in 2023. The cycle was longer in 2022 compared to 2021, but shorter in 2023 compared to 2022. This suggests that the company managed its working capital more efficiently in 2023, resulting in a faster cash conversion cycle.

Interestingly, in 2020 and 2019, Gibraltar Industries Inc. had even shorter cash conversion cycles of 52.86 days and 49.28 days, respectively. This indicates that the company was more efficient in managing its working capital and converting it into cash during those years compared to the most recent years.

Overall, the trend in the cash conversion cycle of Gibraltar Industries Inc. shows some variability over the past five years, with fluctuations in the efficiency of their working capital management and cash conversion processes.