Spire Inc (SR)

The liquidity ratios of Spire Inc. have shown fluctuations over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has gradually declined from 0.82 in 2021 to 0.61 in 2023. This indicates a potential decrease in the company's ability to meet its short-term obligations.

Similarly, the quick ratio, which provides a more stringent assessment of the company's ability to meet its short-term liabilities with its most liquid assets, has also decreased from 0.63 in 2021 to 0.45 in 2023. This suggests that the company may have a reduced capacity to meet its immediate financial obligations.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has shown some fluctuation, with a slight increase from 0.25 in 2021 to 0.28 in 2023. However, the ratio remains relatively low, indicating that the company may have limited cash reserves to cover its short-term obligations.

Overall, the declining trend in these liquidity ratios over the past few years may raise concerns about Spire Inc.'s short-term financial stability and its ability to effectively manage its working capital. This trend warrants further investigation to understand the underlying reasons and potential implications for the company's financial health.

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Additional liquidity measure

The cash conversion cycle for Spire Inc. has shown a fluctuating trend over the past five years. In Sep 2023, the cash conversion cycle increased substantially to 50.15 days compared to the previous year, indicating a longer period required for the company to convert its investments in inventory and receivables into cash. This may be a concern as it signifies a potential slowdown in the company's cash generation process.

In Sep 2022, the cash conversion cycle decreased to 29.84 days, indicating an improvement from the previous year. However, the cycle increased dramatically in Sep 2021 to 58.40 days, marking a significant delay in cash conversion compared to the previous year.

In Sep 2020, the cash conversion cycle was 51.80 days, showing a slight decrease from the prior year. In Sep 2019, the cycle was 54.94 days, indicating a longer period required for cash conversion compared to the previous year.

Overall, the fluctuating trend in the cash conversion cycle for Spire Inc. suggests varying efficiencies in managing inventories, receivables, and payables. It is important for the company to focus on optimizing these processes to reduce the cycle and improve cash flow management.