Skyline Corporation (SKY)

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 2.59 2.42 2.33 2.36 2.56 4.02 4.39 4.19 3.86 2.83 2.45 2.23 2.24 2.02 1.95 1.90 2.19 2.34 2.32 2.14
Quick ratio 1.65 1.54 1.48 1.44 1.61 3.11 3.45 3.27 2.92 1.87 1.25 1.50 1.35 1.07 1.00 1.21 1.49 1.59 1.58 1.37
Cash ratio 1.48 1.36 1.31 1.27 1.47 2.88 3.24 3.00 2.74 1.87 1.25 1.24 1.35 1.07 1.00 1.00 1.29 1.35 1.33 1.12

Skyline Corporation's liquidity ratios show a generally positive trend over the period analyzed. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, increased steadily from 2.14 on March 31, 2020, to a peak of 4.39 on June 30, 2023, before declining to 2.59 on December 31, 2024. This indicates the company has maintained a strong ability to meet its short-term obligations throughout this period.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibited an increasing trend, reaching a high of 3.45 on June 30, 2023. This ratio dipping to 1.65 on December 31, 2024, indicates that the company's ability to meet short-term obligations without relying on inventory diminished slightly towards the end of the period.

The cash ratio, which reflects the company's ability to cover its short-term liabilities with cash and cash equivalents, showed a consistent improvement over the period, peaking at 3.27 on June 30, 2023. However, the ratio decreased to 1.48 on December 31, 2024, indicating a slight decline in the company's short-term liquidity position reliant on cash reserves.

Overall, Skyline Corporation demonstrated strong liquidity positions throughout the period analyzed, as indicated by its current, quick, and cash ratios. However, there was a slight decline in liquidity towards the end of the period, highlighting the importance of ongoing monitoring and management of the company's liquidity position.

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 58.06 55.76 58.68 64.18 60.17 37.63 36.00 36.83 36.45 28.65 39.46 43.92 29.20 27.53 31.27 46.04 40.92 39.84 37.79 36.98

The cash conversion cycle of Skyline Corporation has shown fluctuations over the periods analyzed. It measures the time, in days, it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to March 31, 2021, the cash conversion cycle initially increased from 36.98 days to 46.04 days, indicating a longer cycle duration. Subsequently, there was a notable improvement in efficiency as the cycle decreased to 27.53 days by September 30, 2021. This trend continued with further reductions in the cycle duration to 28.65 days by September 30, 2022.

However, from December 31, 2022, to December 31, 2024, the cash conversion cycle started to extend again, reaching 60.17 days by December 31, 2023, and further rising to 64.18 days by March 31, 2024. This suggests potential challenges in managing working capital efficiency and liquidity during these periods.

Overall, fluctuations in the cash conversion cycle can indicate changes in inventory management, accounts receivable collection, and accounts payable payment patterns within Skyline Corporation. Continuous monitoring and optimization of the cash conversion cycle are crucial for maintaining liquidity and operational effectiveness.