Tegna Inc (TGNA)

Tegna Inc's liquidity ratios indicate the company's ability to meet its short-term obligations.

1. Current Ratio: The current ratio shows an improving trend over the years, starting from 1.59 in 2020 and reaching 2.92 in 2024. This suggests that Tegna Inc's current assets are sufficient to cover its current liabilities. The current ratio peaked at 3.33 in 2022, indicating a strong ability to meet short-term obligations that year.

2. Quick Ratio: The quick ratio, which excludes inventory from current assets, was quite low in 2021 at 0.15, but improved significantly in the following years, reaching the highest level of 1.49 in 2024. This indicates an improvement in Tegna Inc's ability to cover its immediate liabilities with its most liquid assets.

3. Cash Ratio: The cash ratio, representing the most conservative measure of liquidity, mirrors the trend of the quick ratio. It was also low in 2021 at 0.15 but improved to 1.49 in 2024. This suggests that Tegna Inc has a solid level of cash to cover its short-term obligations by the end of 2024.

Overall, Tegna Inc's liquidity ratios reflect a strengthening liquidity position from 2020 to 2024, with the company showing an enhanced ability to handle its short-term financial commitments.

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Additional liquidity measure

The cash conversion cycle for Tegna Inc has shown a decreasing trend over the years, falling from 4.74 days as of December 31, 2020, to 4.50 days as of December 31, 2021. Notably, by December 31, 2022, the cash conversion cycle reached 0.00 days and remained at this level through December 31, 2024. This indicates that Tegna Inc effectively manages its operating cycle, with faster conversion of inventory to receivables and ultimately to cash. A cash conversion cycle of 0.00 days suggests that the company efficiently collects receivables and manages payables, potentially leading to improved liquidity and working capital management.