Rogers Corporation (ROG)
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 | 4.00 | 4.25 | 4.31 | 4.29 | 4.53 | 4.78 | 4.91 | 4.80 | 4.63 | 4.62 | 4.10 | 3.58 | 3.56 | 4.01 | 4.13 | 3.90 | 4.25 | 4.46 | 6.10 | 6.38 |
| Quick ratio | 1.29 | 1.20 | 1.03 | 1.00 | 1.13 | 1.09 | 1.19 | 1.52 | 1.65 | 1.71 | 1.45 | 1.13 | 1.42 | 1.60 | 1.74 | 1.65 | 1.86 | 1.87 | 3.08 | 3.17 |
| Cash ratio | 1.29 | 1.20 | 1.03 | 1.00 | 1.13 | 1.09 | 1.19 | 1.52 | 1.65 | 1.71 | 1.45 | 1.13 | 1.42 | 1.60 | 1.74 | 1.65 | 1.86 | 1.87 | 3.08 | 3.17 |
The liquidity ratios of Rogers Corporation, specifically the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term obligations.
- Current Ratio: The current ratio measures the company's ability to pay its short-term liabilities with its short-term assets. Rogers Corporation's current ratio has been consistently above 1, indicating a strong ability to cover its current liabilities with current assets. The ratio declined from 6.38 on March 31, 2020, to 4.00 on December 31, 2024, but has generally remained at healthy levels throughout the period under review.
- Quick Ratio: The quick ratio, also known as the acid-test ratio, is a more stringent measure of liquidity as it excludes inventory from current assets. Rogers Corporation's quick ratio has shown a decreasing trend over the years, from 3.17 on March 31, 2020, to 1.29 on December 31, 2024. Although the ratio has declined, it typically remained above 1 during the period, suggesting the company has an acceptable level of quick assets to cover immediate liabilities.
- Cash Ratio: The cash ratio is the most conservative liquidity ratio, focusing solely on a company's ability to cover its current liabilities with cash and cash equivalents. Rogers Corporation's cash ratio has also shown a downtrend from 3.17 on March 31, 2020, to 1.29 on December 31, 2024. While the ratio has decreased, it has generally stayed above 1, indicating the company's ability to settle its immediate obligations with cash on hand.
Overall, the liquidity ratios of Rogers Corporation suggest that the company has maintained a solid ability to meet its short-term obligations throughout the period, although there has been a slight downward trend in the quick and cash ratios. It is important for the company to monitor these ratios closely to ensure continued financial stability and liquidity.
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 | 93.92 | 100.69 | 96.18 | 94.57 | 93.17 | 92.95 | 97.20 | 99.22 | 102.40 | 97.52 | 99.58 | 91.51 | 83.40 | 76.86 | 74.70 | 75.28 | 73.15 | 78.48 | 86.41 | 82.71 |
The cash conversion cycle of Rogers Corporation has shown some fluctuations over the past few years. The company's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, shows a trend of increase from 82.71 days as of March 31, 2020, to 93.92 days as of December 31, 2024.
The company's cash conversion cycle was relatively consistent in 2020 and 2021, ranging between 73.15 and 86.41 days. However, there was a noticeable spike in the cycle in the following years, reaching its peak at 102.40 days as of December 31, 2022. Subsequently, the cycle decreased slightly but remained elevated, hovering around the 90-day mark.
Overall, the increasing trend in the cash conversion cycle suggests potential inefficiencies in managing the company's working capital, which may impact its liquidity and operational performance. It would be crucial for Rogers Corporation to evaluate and improve its inventory management, accounts receivable collection, and accounts payable processes to optimize its cash conversion cycle and enhance its overall financial health and sustainability.