SPX Corp (SPXC)

Based on the provided data for SPX Corp's liquidity ratios, we can observe the following trends over the past five years:

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term liabilities with its current assets. SPX Corp's current ratio has fluctuated over the years, ranging from 1.04 in 2019 to 2.16 in 2022. The current ratio improved significantly in 2022 before decreasing slightly in 2023. Generally, a higher current ratio indicates a stronger liquidity position, as the company has more current assets to cover its current liabilities.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. SPX Corp's quick ratio has also varied over the years, with values ranging from 0.59 in 2019 to 1.50 in 2021. A higher quick ratio implies a company's ability to meet its short-term obligations without relying on selling inventory, which is generally seen as a positive indicator of liquidity.

3. Cash Ratio:
- The cash ratio focuses specifically on the company's ability to cover its current liabilities with cash and cash equivalents. SPX Corp's cash ratio has shown a similar trend to the other liquidity ratios, with fluctuations from 0.12 in 2019 to 0.55 in 2022. A higher cash ratio indicates a greater ability to meet short-term obligations with cash on hand, which is important for financial stability and flexibility.

In summary, SPX Corp's liquidity ratios have shown varying levels of liquidity over the past five years, with improvements in certain years and fluctuations in others. Monitoring these ratios can provide valuable insights into the company's ability to meet its short-term obligations and manage its liquidity effectively.

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Additional liquidity measure

SPX Corp's cash conversion cycle has shown a fluctuating trend over the past five years. The cycle measures the time it takes for the company to convert its resources invested in inventory and accounts receivable into cash collected from sales.

Between 2019 and 2023, the cash conversion cycle increased steadily from 73.72 days to 97.64 days. This indicates a lengthening period between the company's cash outflows for inventory and the collection of cash from sales. In particular, there was a notable jump in the cycle from 2020 to 2021, suggesting potential challenges in managing inventory and accounts receivable efficiently.

Overall, the increasing trend in the cash conversion cycle for SPX Corp highlights the importance of closely monitoring working capital management to optimize cash flows and maintain healthy liquidity levels. Further analysis into the underlying factors driving these changes would be beneficial to identify areas for improvement and potential strategies to enhance operational efficiency.