Stanley Black & Decker Inc (SWK)

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 1.19 1.30 1.28 1.30 1.21 1.16 0.85 0.89 0.97 1.23 1.21 1.42 1.32 1.37 1.26 1.06 1.01 0.98 0.95 0.91
Quick ratio 0.34 0.37 0.36 0.06 0.26 0.05 0.02 0.02 0.20 0.05 0.08 0.21 0.27 0.16 0.19 0.18 0.07 0.06 0.05 0.05
Cash ratio 0.08 0.06 0.06 0.06 0.06 0.05 0.02 0.02 0.02 0.05 0.08 0.21 0.27 0.16 0.19 0.18 0.07 0.06 0.05 0.05

Stanley Black & Decker Inc's liquidity ratios demonstrate fluctuations over the past five quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has varied between 0.85 and 1.30. This suggests that the company has had mixed success in meeting its short-term obligations with its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown considerable volatility, ranging from 0.02 to 0.37. This indicates that Stanley Black & Decker Inc may face challenges in meeting its immediate liabilities without relying on inventory.

The cash ratio, which assesses the company's ability to pay off its current liabilities using only its cash and cash equivalents, has also exhibited fluctuations between 0.02 and 0.27. This implies that the company's cash position has varied significantly over the quarters, potentially impacting its ability to settle short-term obligations.

Overall, the liquidity ratios of Stanley Black & Decker Inc suggest a need for careful monitoring of its ability to meet short-term financial commitments, with a focus on managing its current assets effectively to maintain liquidity stability.

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 93.65 107.96 117.77 94.91 129.93 114.52 108.64 96.24 109.39 39.64 25.82 19.41 13.45 22.45 26.55 19.78 6.33 25.71 20.60 20.14

The cash conversion cycle of Stanley Black & Decker Inc has shown some fluctuations over the periods analyzed. The cycle represents the time it takes for the company to convert its investments in inventory into cash from sales.

From December 2019 to September 2020, the cash conversion cycle remained relatively stable, ranging between 6.33 days to 26.55 days. This indicates efficient management of inventory and collections during this period.

However, a significant increase in the cash conversion cycle was observed from December 2020 to March 2022, with the cycle peaking at 129.93 days in December 2022. This suggests potential challenges in managing inventory levels or delays in collecting receivables during this period.

There was a notable improvement in the cash conversion cycle from March 2022 onwards, reaching a low of 13.45 days in March 2021. This improvement may indicate efforts to streamline operations and enhance working capital management.

In the most recent periods, the cycle has fluctuated but remained above 90 days, indicating that the company may still be facing challenges in efficiently managing its working capital. Further analysis of the underlying factors contributing to these fluctuations would be necessary to determine the root causes and potential areas for improvement.