Saia Inc (SAIA)

Saia Inc's liquidity ratios have shown a positive trend over the past five years. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has improved steadily from 0.99 in December 2020 to 1.57 in December 2024. This indicates that Saia Inc's liquidity position has strengthened over the years.

The quick ratio, a more stringent liquidity measure that excludes inventory from current assets, has also exhibited an upward trajectory, rising from 0.88 in December 2020 to 1.39 in December 2024. This signifies that the company has a higher proportion of liquid assets readily available to cover its immediate liabilities.

Furthermore, the cash ratio, which evaluates the firm's ability to pay off its current liabilities using only cash and cash equivalents, has seen significant improvement, escalating from 0.09 in December 2020 to 0.07 in December 2024. This suggests that Saia Inc has enhanced its cash reserves relative to its short-term obligations.

Overall, Saia Inc's liquidity ratios demonstrate a favorable liquidity position, with increasing current, quick, and cash ratios over the five-year period. This indicates the company's ability to meet its short-term financial obligations efficiently and suggests a solid foundation for managing its liquidity risks.

---

Additional liquidity measure

The cash conversion cycle for Saia Inc has shown variability over the analyzed period. In 2020, the company had a cash conversion cycle of 20.72 days, indicating the time it takes to convert its resources into cash. By 2021, the cycle decreased to 16.41 days, suggesting an improvement in efficiency. However, in 2022, the cycle increased significantly to 26.39 days, which may imply a delay in cash generation or utilization of resources.

Interestingly, by 2023, the cash conversion cycle decreased sharply to 4.76 days, reflecting a significant improvement in the company's ability to convert its resources into cash more quickly. Nevertheless, by 2024, the cycle increased again to 26.80 days, possibly signaling operational challenges or changes in the company's working capital management.

Overall, fluctuations in Saia Inc's cash conversion cycle indicate varying levels of efficiency in managing its cash, inventory, and receivables over the analyzed period. Further analysis and comparison with industry benchmarks may provide deeper insights into the company's performance and operational effectiveness.