Rogers Corporation (ROG)

Rogers Corp.'s liquidity ratios reflect the company's ability to meet its short-term obligations and fund its operations. The current ratio has shown a volatile trend over the past five years, ranging from 3.56 to 4.63, with a current ratio of 4.53 as of December 31, 2023. This indicates that the company has $4.53 in current assets for every $1 of current liabilities, suggesting a strong ability to cover its short-term liabilities.

The quick ratio, which excludes inventory from current assets, also exhibits fluctuations but generally remains above 3.0 in the past five years. As of the latest year-end, the quick ratio stands at 3.21, highlighting a healthy ability to meet short-term obligations without relying on inventory liquidation.

Moreover, the cash ratio provides insights into the company's immediate liquidity position. Rogers Corp.'s cash ratio has ranged from 1.73 to 2.10 over the last five years, with the latest figure at 1.78 as of December 31, 2023. This indicates that the company has $1.78 in cash and cash equivalents to cover each dollar of current liabilities, suggesting a satisfactory level of liquidity to meet short-term obligations without relying on other current assets.

Overall, the liquidity ratios of Rogers Corp. demonstrate a consistent ability to cover short-term liabilities with current assets, and the company maintains a prudent level of liquidity to support its operational and financial stability.

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Additional liquidity measure

The cash conversion cycle of Rogers Corp. has fluctuated over the past five years. In 2023, the company's cash conversion cycle improved to 129.42 days compared to 138.35 days in 2022. This indicates that the company is managing its cash more efficiently by reducing the time it takes to convert its investments in inventory and accounts receivable into cash.

However, when compared to 2021, where the cash conversion cycle was 108.02 days, there was a slight deterioration in efficiency in 2023. It is important to note that a shorter cash conversion cycle is generally favorable as it means the company is able to generate cash quicker and operate more effectively.

Overall, the trend in the cash conversion cycle of Rogers Corp. shows some variability but remains at levels that suggest the company is effectively managing its working capital and cash flows. Further analysis of the company's inventory turnover, accounts receivable collection period, and accounts payable payment period could provide additional insight into the efficiency of its operating cycle.