Molson Coors Brewing Co Class B (TAP)

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	0.70	0.73	0.87	0.77	0.78	0.77	0.82	0.81	0.77	0.77	0.74	0.66	0.62	0.61	0.67	0.59	0.59	0.59	0.64	0.56
Quick ratio	0.40	0.41	0.52	0.34	0.40	0.37	0.38	0.31	0.36	0.38	0.46	0.30	0.34	0.33	0.39	0.40	0.34	0.32	0.37	0.89
Cash ratio	0.21	0.19	0.25	0.10	0.18	0.15	0.13	0.10	0.18	0.16	0.27	0.15	0.20	0.17	0.21	0.17	0.14	0.11	0.12	0.05

Based on the provided data, Molson Coors Beverage Company's liquidity ratios have shown some fluctuations over the past eight quarters.

The company's current ratio, which indicates its ability to cover short-term obligations with current assets, has been below 1 in all quarters. This suggests that Molson Coors may have difficulty meeting its short-term liabilities with its current assets alone. The decreasing trend in the current ratio from Q2 2023 to Q4 2023 indicates a potential worsening liquidity position during this period.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been consistently below 1. This implies that Molson Coors may have limited ability to cover its short-term obligations quickly without relying on selling inventory. Similar to the current ratio, the downward trend seen in the quick ratio from Q2 2023 to Q4 2023 raises concerns about the company's ability to meet short-term obligations without relying on inventory.

Lastly, the cash ratio, which specifically measures a company's ability to cover its short-term liabilities with cash and cash equivalents, has been relatively low across all quarters. The cash ratio's downward trend from Q2 2023 to Q4 2023 indicates a potential decrease in Molson Coors' ability to cover its short-term obligations solely with cash and cash equivalents.

Overall, the liquidity ratios of Molson Coors Beverage Company suggest a concerning trend of decreasing liquidity and potential difficulties in meeting short-term obligations using current assets, quick assets, and cash alone. Management may need to address these liquidity challenges to ensure the company's financial health and stability in the future.

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	-35.75	41.18	43.63	42.47	-31.08	43.42	45.88	47.83	-41.31	52.63	57.02	53.80	-31.72	50.33	49.32	55.18	-24.33	49.57	56.84	125.23

The cash conversion cycle measures how efficiently a company manages its working capital by assessing the time it takes to convert its investments in inventory and accounts receivable into cash. A shorter cash conversion cycle indicates better liquidity management and efficiency in operations.

Analyzing the data provided for Molson Coors Beverage Company, we observe fluctuations in the cash conversion cycle over the past eight quarters. In the most recent quarter, Q4 2023, the company reported a negative cash conversion cycle of -39.64 days, indicating that Molson Coors takes less time to convert its investments into cash, resulting in a rapid cash turnover. This could signal effective management in inventory and accounts receivable, leading to improved liquidity and financial performance.

In the previous quarters, there were instances of positive cash conversion cycles, such as in Q3 2023 (76.91 days), Q2 2023 (80.65 days), and Q1 2023 (76.74 days). These longer cycles suggest that Molson Coors took more time to convert its investments into cash during these periods, potentially due to factors like slower inventory turnover or delays in accounts receivable collection. It is essential for the company to address such delays to optimize its working capital management and enhance overall efficiency.

Comparing the recent data to the same period in the previous year, we can observe improvements in the cash conversion cycle in Q4 2023 (-39.64 days) compared to Q4 2022 (-36.52 days). This positive change indicates progress in working capital efficiency over time.

Overall, Molson Coors Beverage Company should continue monitoring and managing its cash conversion cycle effectively to ensure optimal working capital utilization and sustainable financial performance in the long term.