Gibraltar Industries Inc (ROCK)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 2.56 | 2.05 | 1.97 | 1.56 | 1.41 |
| Quick ratio | 1.72 | 1.44 | 1.09 | 0.87 | 0.76 |
| Cash ratio | 1.06 | 0.44 | 0.08 | 0.04 | 0.11 |
Gibraltar Industries Inc's liquidity position has improved over the years as indicated by the increasing trend in its current ratio. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, rose from 1.41 in 2020 to 2.56 in 2024. This suggests that the company has sufficient current assets to meet its short-term obligations.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also demonstrates an upward trend from 0.76 in 2020 to 1.72 in 2024. This indicates that Gibraltar Industries Inc's ability to cover its immediate liabilities with its most liquid assets has strengthened over the years.
The cash ratio, which focuses solely on the company's cash and cash equivalents relative to its current liabilities, shows a significant improvement from 0.11 in 2020 to 1.06 in 2024. This suggests that the company has a higher proportion of cash readily available to meet its short-term obligations, reflecting a stronger liquidity position.
Overall, the increasing current, quick, and cash ratios indicate that Gibraltar Industries Inc has enhanced its liquidity position, demonstrating its ability to meet short-term financial obligations effectively and efficiently over the years.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 55.14 | 69.69 | 78.75 | 65.78 | 52.86 |
The cash conversion cycle of Gibraltar Industries Inc has fluctuated over the past five years. It stood at 52.86 days as of December 31, 2020, increased to 65.78 days by December 31, 2021, further rose to 78.75 days by December 31, 2022, then decreased to 69.69 days by December 31, 2023, and finally declined to 55.14 days by December 31, 2024. This trend indicates that the company has been managing its cash conversion cycle more efficiently in recent years, resulting in a shorter time to convert its investments in inventory and accounts receivable into cash. This improvement may suggest better working capital management and operational efficiency within the company.