Tegna Inc (TGNA)

The liquidity ratios of TEGNA Inc over the past five years indicate the company's ability to meet short-term obligations and manage its cash flow effectively.

1. Current Ratio:
- The current ratio measures TEGNA's ability to cover short-term obligations with its current assets.
- TEGNA's current ratio has shown a generally increasing trend from 2019 to 2023, with the highest level recorded in 2022 at 3.33.
- A current ratio above 1 indicates that TEGNA has more current assets than current liabilities, which is generally considered favorable for creditors.

2. Quick Ratio:
- The quick ratio is a more stringent measure of liquidity as it excludes inventory from current assets.
- TEGNA's quick ratio mirrors the trend of the current ratio, showing an increasing trend over the same period.
- The quick ratio is also above 1 for each year, indicating that TEGNA can meet its short-term obligations even without relying on inventory.

3. Cash Ratio:
- The cash ratio specifically evaluates TEGNA's ability to cover its current liabilities with cash and cash equivalents only.
- The cash ratio has fluctuated over the years but has generally improved from 2019 to 2023.
- In 2022, TEGNA had a cash ratio of 1.62, indicating that it had $1.62 in cash and cash equivalents for every dollar of current liabilities.

Overall, TEGNA Inc's liquidity ratios demonstrate a strong ability to meet short-term obligations and maintain healthy levels of liquidity. The increasing trend in these ratios over the years reflects improved liquidity management and financial health for the company.

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Additional liquidity measure

The cash conversion cycle of TEGNA Inc has shown a fluctuating trend over the past five years. In 2023, the company's cash conversion cycle decreased to 55.06 days from 58.35 days in 2022, indicating an improvement in efficiency in managing its cash flow and working capital. This suggests that TEGNA Inc was able to convert its investments in inventory and accounts receivable into cash more quickly in 2023.

Compared to 2019 when the cash conversion cycle was 80.04 days, the company has made significant progress in optimizing its working capital management. The downward trend since 2019 reflects improved effectiveness in converting sales into cash, reducing the time it takes for the company to recover its investment in inventory and accounts receivable.

Despite a slight increase in 2021, TEGNA Inc managed to bring down its cash conversion cycle to its lowest level in 2023, which may indicate enhanced operational efficiency or improvement in inventory turnover and receivables collection processes. Continued focus on maintaining a shorter cash conversion cycle can lead to better liquidity and financial performance for the company.