SPX Corp (SPXC)

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 1.87 1.85 1.28 1.12 1.77 1.56 1.51 2.08 2.16 2.24 2.11 2.07 2.06 2.19 1.27 1.19 1.17 1.15 1.09 1.06
Quick ratio 0.38 0.28 0.21 0.15 0.27 0.22 0.20 0.54 0.47 0.49 0.52 0.67 0.88 1.17 0.10 0.18 0.12 0.25 0.27 0.23
Cash ratio 0.38 0.28 0.21 0.15 0.27 0.22 0.20 0.54 0.47 0.49 0.52 0.67 0.88 1.17 0.10 0.18 0.12 0.25 0.27 0.23

SPX Corp's liquidity ratios, specifically the current ratio, quick ratio, and cash ratio, have shown fluctuations over the analyzed periods.

The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has generally been increasing from 1.06 on March 31, 2020, to 2.16 on December 31, 2022. However, there was a decline in the current ratio in the following periods, reaching 1.87 by December 31, 2024.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also displayed varied trends. The ratio ranged from a low of 0.10 on June 30, 2021, to a high of 1.17 on September 30, 2021. The quick ratio trended downwards towards the end of the period, reaching 0.38 by December 31, 2024.

The cash ratio, indicating the company's ability to cover its current liabilities with cash and cash equivalents, mirrored the movements of the quick ratio. It ranged from 0.10 on June 30, 2021, to 1.17 on September 30, 2021, before decreasing to 0.38 by December 31, 2024.

Overall, the liquidity ratios of SPX Corp indicate a generally improving liquidity position up to 2022, followed by some deterioration in the ability of the company to cover its short-term obligations with liquid assets towards the end of the period. Further analysis and consideration of other factors will provide a more comprehensive view of the company's liquidity and financial health.

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 81.34 91.93 90.85 96.31 94.28 100.68 107.83 97.87 94.33 107.83 101.01 99.41 78.68 63.85 55.52 56.24 54.59 61.13 61.71 59.23

The cash conversion cycle of SPX Corp has fluctuated over the years, indicating variations in the company's efficiency in managing its operating cycle. The cycle started at 59.23 days in March 2020 and increased gradually to 101.01 days by June 2022. This marked increase suggests potential inefficiencies in converting resources into cash during this period.

However, there was a slight improvement as the cycle decreased to 81.34 days by December 2024. An increase in the cash conversion cycle indicates longer periods of time required to convert investments in inventory and receivables into cash inflows, which may strain liquidity and working capital management.

It is essential for SPX Corp to analyze the reasons behind these fluctuations in the cash conversion cycle to identify areas for improvement in operational efficiency, inventory management, and accounts receivable collection processes to optimize cash flow and enhance financial performance.