Gibraltar Industries Inc (ROCK)

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 2.05 1.62 1.58 1.79 1.97 1.91 1.74 1.69 1.56 1.61 1.39 1.36 1.41 1.79 1.73 1.64 1.91 1.81 1.92 1.89
Quick ratio 1.44 1.09 0.97 0.99 1.09 1.05 0.96 0.91 0.87 0.98 0.84 0.85 0.76 1.42 1.31 1.17 1.48 1.39 1.39 1.25
Cash ratio 0.44 0.27 0.06 0.03 0.08 0.08 0.06 0.05 0.04 0.05 0.06 0.08 0.11 0.67 0.50 0.39 0.83 0.57 0.43 0.26

The current ratio of Gibraltar Industries Inc. has shown a fluctuating trend, ranging from 1.58 to 2.05 over the past eight quarters. This indicates the company's ability to cover its short-term liabilities with its current assets. Generally, a current ratio above 1 signifies good liquidity, and the company has consistently maintained a current ratio above this threshold.

The quick ratio, which measures the company's ability to meet short-term obligations with its most liquid assets, has also demonstrated variability, ranging from 1.04 to 1.51 during the same period. This indicates that the company has a moderate level of liquidity, as it can cover its current liabilities without relying on inventory.

On the other hand, the cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) to cover short-term liabilities, has shown a similar fluctuating pattern, varying from 0.11 to 0.52 over the same period. This suggests that Gibraltar Industries Inc. has a limited ability to cover its current liabilities using only its cash reserves.

Overall, while the company's current ratio and quick ratio suggest sufficient liquidity to meet short-term obligations, the cash ratio highlights a potential weakness in its ability to cover immediate liabilities solely with cash on hand. It might be beneficial for Gibraltar Industries Inc. to explore strategies to improve its cash reserves for enhanced liquidity management.

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 69.69 61.57 72.80 76.33 78.75 86.95 85.04 75.01 65.78 71.37 54.59 53.70 52.86 44.39 52.62 60.07 54.20 67.08 72.01 70.67

The cash conversion cycle of Gibraltar Industries Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 69.69 days, which was lower compared to the previous quarter at 61.57 days. This improvement suggests that the company has been able to better manage its working capital and convert its inventory and receivables into cash more efficiently.

Looking further back, we can see that the cash conversion cycle has been somewhat volatile, with peaks in Q3 and Q4 of 2022 at 86.95 days and 78.75 days, respectively. However, in the recent quarters of 2023, there seems to be a trend towards shorter cash conversion cycles.

Overall, fluctuations in the cash conversion cycle can be influenced by various factors such as changes in inventory management, accounts receivable collection efficiency, and accounts payable terms. It is important for Gibraltar Industries Inc. to continue monitoring and managing its cash conversion cycle to ensure optimal working capital management and overall financial health.