SunCoke Energy Inc (SXC)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 2.31 | 1.86 | 1.67 | 1.49 | 1.45 |
| Quick ratio | 0.92 | 0.63 | 0.40 | 0.35 | 0.30 |
| Cash ratio | 0.92 | 0.63 | 0.40 | 0.35 | 0.30 |
SunCoke Energy Inc's liquidity ratios have shown a generally positive trend over the years, indicating an improvement in the company's short-term financial health.
1. Current Ratio:
The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has increased from 1.45 in 2020 to 2.31 in 2024. This indicates that SunCoke Energy has strengthened its liquidity position over the years, as it now has more current assets to cover its current liabilities.
2. Quick Ratio:
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. SunCoke Energy's quick ratio has also shown a positive trend, increasing from 0.30 in 2020 to 0.92 in 2024. This improvement suggests that the company has a better ability to meet its short-term obligations with its most liquid assets.
3. Cash Ratio:
The cash ratio, a more conservative measure of liquidity that assesses the company's ability to cover its current liabilities with cash and cash equivalents, has increased steadily from 0.30 in 2020 to 0.92 in 2024. This indicates that SunCoke Energy has a strong cash position relative to its short-term obligations, which is a positive sign for its financial stability.
In conclusion, SunCoke Energy Inc has demonstrated an improvement in its liquidity ratios over the years, with the current, quick, and cash ratios all showing positive trends. This suggests that the company has a strong liquidity position and is well-equipped to meet its short-term financial commitments.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 41.16 | 38.65 | 39.85 | 41.43 | 44.08 |
SunCoke Energy Inc's cash conversion cycle has shown a consistent improvement over the past five years. The cycle decreased from 44.08 days on December 31, 2020, to a low of 38.65 days on December 31, 2023, before slightly increasing to 41.16 days on December 31, 2024.
A lower cash conversion cycle indicates that the company is managing its working capital more efficiently, converting its investments in inventory and accounts receivable into cash more quickly. This can lead to improved liquidity and operational efficiency.
Overall, the trend of decreasing the cash conversion cycle is a positive sign for SunCoke Energy Inc, suggesting that the company has been able to streamline its operations and manage its cash flow effectively over the years.