SunCoke Energy Inc (SXC)
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 | 1.86 | 1.68 | 1.72 | 1.77 | 1.67 | 1.77 | 1.72 | 1.67 | 1.49 | 1.37 | 1.56 | 1.45 | 1.45 | 1.77 | 2.31 | 2.68 | 1.58 | 1.73 | 1.84 | 1.78 |
| Quick ratio | 1.02 | 0.83 | 0.79 | 0.71 | 0.87 | 0.81 | 0.80 | 0.78 | 0.78 | 0.63 | 0.62 | 0.59 | 0.60 | 0.85 | 1.09 | 1.72 | 0.82 | 0.84 | 0.96 | 1.06 |
| Cash ratio | 0.63 | 0.50 | 0.35 | 0.36 | 0.40 | 0.27 | 0.29 | 0.35 | 0.35 | 0.30 | 0.32 | 0.32 | 0.30 | 0.55 | 0.68 | 1.40 | 0.50 | 0.51 | 0.49 | 0.66 |
Based on the liquidity ratios of SunCoke Energy Inc provided in the table, we can make the following observations:
1. Current ratio: SunCoke Energy Inc's current ratio has shown some variability over the quarters, ranging from 1.67 to 1.86. A current ratio above 1 indicates that the company's current assets are sufficient to cover its current liabilities, with more conservative levels around 2 considered healthy. SunCoke Energy Inc's current ratio has generally been above 1.5, indicating a reasonable level of liquidity.
2. Quick ratio: The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its most liquid assets. SunCoke Energy Inc's quick ratio has fluctuated between 0.75 and 1.05. A quick ratio above 1 is typically desired, as it shows that the company can meet its short-term liabilities without relying on inventory sales. SunCoke Energy Inc's quick ratio has generally been close to or slightly above 1, suggesting a relatively stable liquidity position.
3. Cash ratio: The cash ratio is the most conservative liquidity ratio, as it only considers the most liquid assets, cash and cash equivalents, in relation to current liabilities. SunCoke Energy Inc's cash ratio has varied from 0.30 to 0.65. A cash ratio above 0.20 is considered healthy, indicating the company has enough cash on hand to cover its short-term obligations. SunCoke Energy Inc's cash ratio has generally been above 0.30, demonstrating a solid ability to meet its immediate liabilities.
Overall, based on these liquidity ratios, SunCoke Energy Inc appears to have maintained a reasonable level of liquidity over the quarters, with current assets generally sufficient to cover its short-term liabilities. It is essential for the company to continue monitoring and managing its liquidity position to ensure it can meet its financial 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 | 33.45 | 56.50 | 62.43 | 118.97 | 46.48 | 111.76 | 83.20 | 71.50 | 22.34 | 28.82 | 67.91 | 63.37 | 50.56 | 38.72 | 39.98 | 25.78 | 15.25 | 24.31 | 33.92 | 22.51 |
The cash conversion cycle of SunCoke Energy Inc has shown fluctuations over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and accounts receivable into cash from sales. A lower cash conversion cycle indicates better efficiency in managing working capital.
In Q4 2023, the cash conversion cycle for SunCoke Energy Inc was 18.09 days, indicating the company was able to convert its investments into cash relatively quickly compared to the previous quarter. This may suggest effective management of inventory and accounts receivable.
In Q3 2023, the cash conversion cycle increased to 19.65 days, which could be due to delays in converting sales into cash or an increase in the time it takes to sell inventory. However, this was still lower than the cycle in Q2 2023, which was 22.92 days.
The cash conversion cycle reached its peak in Q1 2023 at 28.25 days, indicating a longer time to convert investments into cash. This may raise concerns about the company's efficiency in managing working capital during that period.
Comparing the current cycle to the same quarter in the previous year, we see improvements in efficiency. For example, in Q4 2023, the cash conversion cycle of 18.09 days was lower than the cycle of 23.01 days in Q4 2022, indicating progress in working capital management.
Overall, fluctuations in the cash conversion cycle of SunCoke Energy Inc suggest varying levels of efficiency in managing working capital over the past eight quarters. It is essential for the company to continuously monitor and improve this metric to ensure optimal cash flow and operational effectiveness.