SPX Corp (SPXC)

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

1. Current Ratio: The current ratio measures the company's ability to meet short-term obligations with its current assets. SPX Corp's current ratio has fluctuated over the periods, ranging from a low of 1.04 in March 2020 to a high of 2.16 in December 2022. Ideally, a current ratio above 1 indicates that the company has more current assets than current liabilities, ensuring it can cover its short-term debts. SPX Corp's current ratio has generally been above 1, indicating a healthy liquidity position.

2. Quick Ratio: The quick ratio provides a more stringent measure of liquidity by excluding inventory from current assets. SPX Corp's quick ratio has varied significantly, with the lowest point being 0.07 in June 2021 and the highest being 1.50 in September 2021. A quick ratio above 1 signifies that the company can meet its short-term obligations without relying on selling inventory. While SPX Corp's quick ratio has been volatile, the ratios above 1 indicate a reasonable ability to cover short-term liabilities.

3. Cash Ratio: The cash ratio is the most conservative liquidity measure, focusing solely on cash and cash equivalents to cover current liabilities. SPX Corp's cash ratio has shown some stability, with fluctuations between 0.08 and 1.16. A cash ratio of 1 indicates that the company could pay off all its current liabilities with just cash on hand. SPX Corp's cash ratio has generally been in a satisfactory range, although it did fall below 1 in some periods.

Overall, SPX Corp's liquidity ratios have demonstrated some variability but generally suggest that the company has maintained a relatively stable liquidity position over the periods analyzed. The current and quick ratios have mostly remained above 1, indicating the ability to meet short-term obligations, while the cash ratio has shown some fluctuations but generally remained at acceptable levels. Further analysis and consideration of industry benchmarks would provide additional context to fully assess the company's liquidity position.

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Additional liquidity measure

The cash conversion cycle of SPX Corp has shown fluctuation over the past few quarters, indicating variability in the company's efficiency in managing its working capital. Typically, a shorter cash conversion cycle is favorable as it signifies that the company is able to convert its investment in inventory back into cash quickly.

Looking at the data provided, the cash conversion cycle ranged from as low as 2.36 days in March 2019 to as high as 126.96 days in June 2023. The longest cash conversion cycle was recorded in June 2023, indicating a significant delay in converting inventory and receivables into cash, which may suggest issues with inventory management or delays in collecting payments from customers.

Conversely, the shortest cash conversion cycle was observed in March 2019, signifying efficient management of working capital during that period. The company was able to swiftly convert its inventory and receivables into cash, reflecting strong operational performance and liquidity management.

Overall, monitoring the cash conversion cycle of SPX Corp is crucial for assessing its efficiency in managing working capital and identifying potential areas for improvement to optimize cash flow and operational performance.