Republic Services Inc (RSG)

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	0.58	0.64	0.59	0.53	0.56	0.58	0.76	0.74	0.70	0.70	0.73	0.75	0.71	0.67	0.64	0.67	0.67	0.81	0.76	0.89
Quick ratio	0.07	0.08	0.15	0.05	0.07	0.08	0.11	0.09	0.08	0.06	0.08	0.07	0.07	0.08	0.08	0.07	0.08	0.25	0.20	0.15
Cash ratio	0.07	0.08	0.15	0.05	0.07	0.08	0.11	0.09	0.08	0.06	0.08	0.07	0.07	0.08	0.08	0.07	0.08	0.25	0.20	0.15

The liquidity ratios of Republic Services Inc over the reporting period demonstrate the company's ability to meet its short-term obligations.

1. Current Ratio: The current ratio, which indicates the company's ability to cover its short-term liabilities with its short-term assets, exhibited a decreasing trend from 0.89 on March 31, 2020, to 0.58 on December 31, 2024. Although the ratio fluctuated over the period, it generally stayed below the desirable industry benchmark of 1, suggesting potential challenges in meeting short-term obligations with current assets alone.

2. Quick Ratio: The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also showed a decline from 0.15 on March 31, 2020, to 0.07 on December 31, 2024. This indicates that the company may have difficulty in meeting its short-term obligations using only its most liquid assets, such as cash and receivables.

3. Cash Ratio: The cash ratio, which specifically assesses the company's ability to cover its short-term liabilities with its cash and cash equivalents, mirrored the trend seen in the quick ratio, declining from 0.15 on March 31, 2020, to 0.07 on December 31, 2024. This downward trend implies that Republic Services Inc may face challenges in utilizing its cash reserves to settle immediate obligations in the future.

Overall, the decreasing trend in the liquidity ratios of Republic Services Inc highlights a potential liquidity risk, indicating a need to closely monitor the company's ability to meet its short-term financial commitments. Additional measures may be necessary to enhance liquidity, such as improving cash management practices or refinancing short-term debts to ensure financial stability in the short term.

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	3.49	3.36	3.62	3.90	3.79	4.12	4.00	4.15	4.30	4.71	4.96	4.22	3.91	3.84	3.72	3.66	3.54	3.52	3.45	3.29

The cash conversion cycle of Republic Services Inc has shown some fluctuations over the past several quarters. From March 31, 2020, to June 30, 2022, there was a gradual increase in the cash conversion cycle, indicating that the company took longer to convert its investments in inventory into cash during this period.

However, starting from June 30, 2022, to December 31, 2024, there was a decreasing trend in the cash conversion cycle, suggesting an improvement in the company's efficiency in managing its working capital and converting its inventory into cash more quickly.

Overall, Republic Services Inc maintained a relatively low cash conversion cycle, indicating efficient management of its working capital and effective cash flow management. Monitoring this metric going forward will be crucial to understand the company's ability to generate cash from its operating activities and maintain its financial health.