Schneider National Inc (SNDR)

Schneider National Inc's liquidity ratios, specifically the current ratio, quick ratio, and cash ratio, show a trend of a decreasing liquidity position over the past five years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has decreased from 3.02 in 2019 to 1.83 in 2023. This indicates a decline in the company's ability to meet its short-term liabilities with its current assets.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a downward trend from 2.35 in 2019 to 1.32 in 2023. This suggests that Schneider National Inc may be becoming less able to cover its immediate liabilities without relying on selling inventory.

The cash ratio, which reflects the company's ability to cover its current liabilities with cash and cash equivalents alone, has decreased significantly from 1.29 in 2019 to 0.26 in 2023. This indicates a decline in the company's ability to pay off its short-term obligations solely with its available cash resources.

Overall, the decreasing trend in Schneider National Inc's liquidity ratios raises concerns about its ability to meet its short-term financial obligations without potentially resorting to external financing sources. Management may need to closely monitor and address the factors contributing to this declining liquidity position in order to maintain financial stability and flexibility in the future.

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Additional liquidity measure

The cash conversion cycle of Schneider National Inc has shown varying trends over the past five years. In 2023, the cash conversion cycle increased significantly to 24.09 days, reflecting a longer time it takes the company to convert its investments in inventory and receivables back into cash.

Compared to the prior year, the cash conversion cycle was 4.31 days in 2022, indicating a more efficient conversion of resources into cash. The negative cash conversion cycle of -7.36 days in 2021 suggests that Schneider National Inc was able to generate cash from sales before paying for its expenses, suppliers, and creditors.

In 2020, the cash conversion cycle was 4.32 days, similar to the 2022 figure, indicating stability in the company's cash conversion efficiency during that period. However, in 2019, the cash conversion cycle was at 23.94 days, reflecting a longer conversion period compared to the following years.

Overall, fluctuations in the cash conversion cycle of Schneider National Inc indicate changes in the company's efficiency in managing its working capital and converting investments into cash over the years.