Spire Inc (SR)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.55 0.61 0.56 0.79 0.68 0.68 0.72 0.78 0.83 0.82 0.70 0.69 0.50 0.41 0.50 0.62 0.62 0.42 0.53 0.59
Quick ratio 0.19 0.52 0.18 0.36 0.24 0.13 0.22 0.36 0.32 0.20 0.69 0.36 0.17 0.08 0.13 0.30 0.23 0.09 0.14 0.26
Cash ratio 0.00 0.42 0.00 0.00 0.04 0.04 0.06 0.07 0.06 0.00 0.44 0.07 0.00 0.00 0.01 0.09 0.02 0.00 0.00 0.01

The liquidity ratios of Spire Inc. provide insights into the company's ability to meet its short-term obligations and manage its liquidity effectively.

Starting with the current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, we observe a declining trend over the quarters. The ratio has decreased from 0.79 in Q2 2023 to 0.55 in Q1 2024, indicating a potential strain on the company's liquidity position. A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations using its current assets.

Moving on to the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, we see a similar downward trend. The ratio has decreased from 0.64 in Q2 2023 to 0.43 in Q1 2024, further highlighting potential challenges in meeting short-term obligations without relying on inventory.

Lastly, looking at the cash ratio, which is the most conservative measure of liquidity focusing solely on cash and cash equivalents, we notice fluctuations in the company's cash position. The ratio has ranged from 0.14 to 0.28 over the past quarters, indicating variability in the company's ability to cover its short-term liabilities with its cash reserves.

Overall, based on the declining trends in the current ratio, quick ratio, and fluctuations in the cash ratio, it appears that Spire Inc. may be facing some liquidity challenges. It is important for the company to closely monitor its liquidity position and take necessary steps to improve its ability to meet short-term obligations effectively.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 41.18 59.98 106.77 28.97 -128.26 -263.68 -390.45 -245.21 35.68 26.26 34.58 31.72 37.37 11.38 16.60 28.44 20.31 -6.39 -8.05 6.26

The cash conversion cycle of Spire Inc. fluctuated over the past quarters, reflecting changes in its operational efficiency and working capital management.

In Q1 2024, the cash conversion cycle was 73.99 days, indicating that on average, it took the company almost 74 days to convert its investments in inventory and accounts receivable into cash. This could suggest some challenges in efficiently managing its working capital.

Compared to the previous quarters, the cash conversion cycle was relatively higher, as seen in Q2 2023 and Q1 2023, indicating a longer period to convert resources into cash. This could potentially be a result of a slower inventory turnover or collections on accounts receivable.

In Q4 2022 and Q3 2022, the cash conversion cycle was negative, indicating that the company was able to convert its investments into cash more quickly than the time it took to pay off its suppliers. This may suggest efficient working capital management during those periods.

Overall, Spire Inc. should aim to reduce its cash conversion cycle to improve liquidity management and enhance its operational efficiency. The company may consider optimizing inventory levels, streamlining accounts receivable processes, and negotiating favorable payment terms with suppliers to shorten the cycle and improve cash flow.