Simpson Manufacturing Company Inc (SSD)

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 3.21 3.53 3.69 3.77 3.63 3.46 3.46 3.70 3.38 3.56 3.33 5.83 4.08 3.87 3.88 3.64 3.88 4.29 4.32 4.62
Quick ratio 1.43 1.85 2.03 2.02 1.98 2.16 2.01 1.79 2.50 1.86 1.72 4.25 3.41 2.16 2.39 2.16 2.28 2.83 2.84 2.89
Cash ratio 0.65 0.90 0.98 1.05 1.19 1.34 1.03 0.76 1.73 0.89 0.68 3.21 2.46 1.20 1.32 1.15 1.43 1.64 1.63 1.85

Simpson Manufacturing Company Inc's liquidity ratios indicate the firm's ability to meet its short-term obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown fluctuations over the years. It peaked at 5.83 on March 31, 2022, indicating a strong liquidity position, before declining to 3.21 on December 31, 2024.

The quick ratio, a more stringent liquidity measure that excludes inventory from current assets, also experienced variability. It reached a high of 4.25 on March 31, 2022, suggesting a robust ability to meet short-term liabilities without relying on inventory, but declined to 1.43 on December 31, 2024, signaling a decrease in liquidity.

Looking at the cash ratio, which reflects the company's ability to cover its current liabilities with cash and cash equivalents, Simpson Manufacturing's ratio ranged from 0.65 to 3.21 over the years. The ratio saw fluctuations, possibly indicating changes in the company's cash position and ability to fulfill immediate obligations.

Overall, Simpson Manufacturing Company Inc's liquidity ratios show a generally healthy liquidity position, although there have been fluctuations over the years. It is important for stakeholders to monitor these ratios regularly to assess the company's ability to meet short-term obligations effectively.

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 150.45 160.12 155.06 155.16 144.32 150.16 160.98 164.81 152.02 165.76 185.02 176.78 176.26 167.99 149.92 145.16 136.03 150.29 157.18 136.25

The cash conversion cycle, a measure of how efficiently a company manages its working capital, fluctuated for Simpson Manufacturing Company Inc over the period studied. The cycle calculates the number of days it takes for a company to convert its resources into cash flows.

From March 31, 2020, to December 31, 2024, the cash conversion cycle varied between 136.03 days to 185.02 days, with an average cycle length of approximately 155 days.

It is crucial to note that a shorter cash conversion cycle indicates faster turnover and better efficiency in managing working capital. On the other hand, a longer cycle may be a sign of inefficiencies or potential liquidity issues.

Throughout the period, Simpson Manufacturing Company Inc experienced fluctuations in its cash conversion cycle, indicating changes in its ability to efficiently manage its cash flow in converting inputs into cash outputs. The downward trend observed towards the end of the period could suggest improvements in the company's working capital management. However, continued monitoring and analysis of the cash conversion cycle are recommended to assess the company's ongoing financial health and operational effectiveness.