Schneider National Inc (SNDR)

Schneider National Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio, which measures current assets against current liabilities, shows a downward trend from 2.28 in 2020 to 1.58 in 2024. This suggests a weakening ability to cover short-term liabilities with current assets over the years.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrates a declining trend from 0.83 in 2020 to 0.23 in 2024. This indicates a significant decrease in the company's ability to meet immediate liabilities with its most liquid assets.

The cash ratio, which specifically assesses the ability to cover current liabilities with cash and cash equivalents, mirrors the trend seen in the quick ratio, declining from 0.83 in 2020 to 0.23 in 2024. This highlights a reduced capacity to settle short-term obligations solely with cash reserves.

Overall, the decreasing liquidity ratios suggest potential challenges for Schneider National Inc in meeting its short-term financial obligations in the coming years. Management should closely monitor and potentially take actions to improve liquidity to ensure continued financial stability.

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Additional liquidity measure

The cash conversion cycle of Schneider National Inc has shown fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 4.02 days, indicating that it took approximately 4 days for Schneider National to convert its investments in inventory and accounts receivable into cash.

By December 31, 2021, Schneider National was able to improve its efficiency in managing its working capital, as reflected in a decrease in the cash conversion cycle to 2.06 days. This reduction suggests that the company was able to streamline its operations and accelerate the conversion of inventory and receivables into cash.

However, by December 31, 2022, the cash conversion cycle slightly increased to 3.40 days, indicating that Schneider National took slightly longer to convert its working capital into cash compared to the previous year. This may have been influenced by changes in inventory management or collection practices.

The cash conversion cycle significantly increased to 8.71 days by December 31, 2023, reflecting a potential slowdown in Schneider National's cash conversion efficiency. A longer cash conversion cycle can indicate challenges in managing inventory, collecting receivables, or a decrease in overall liquidity.

As of December 31, 2024, Schneider National managed to decrease its cash conversion cycle to 6.76 days, showing some improvement in its working capital management compared to the previous year. It is essential for the company to monitor and optimize its cash conversion cycle to ensure efficient utilization of resources and maintain healthy liquidity levels.