Tegna Inc (TGNA)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.92 | 2.60 | 2.58 | 2.53 | 2.48 | 3.47 | 3.44 | 3.70 | 3.33 | 2.71 | 2.39 | 2.02 | 2.10 | 2.16 | 2.20 | 1.78 | 1.59 | 1.91 | 2.25 | 2.00 |
| Quick ratio | 1.49 | 1.15 | 3.07 | 0.99 | 0.85 | 1.55 | 1.47 | 1.81 | 1.41 | 0.95 | 0.54 | 0.11 | 0.15 | 0.15 | 0.59 | 0.38 | 0.42 | 0.77 | 0.55 | 0.11 |
| Cash ratio | 1.49 | 1.15 | 3.07 | 0.99 | 0.85 | 1.55 | 1.47 | 1.81 | 1.41 | 0.95 | 0.54 | 0.11 | 0.15 | 0.15 | 0.59 | 0.38 | 0.42 | 0.77 | 0.55 | 0.11 |
The current ratio, which indicates the company's ability to cover its short-term liabilities with its current assets, shows a generally positive trend for Tegna Inc over the period from March 31, 2020, to December 31, 2024. Starting at 2.00 in March 2020, the ratio increased steadily, peaking at 3.70 in March 2023, before declining to 2.92 by December 2024. Overall, the current ratio remained above 1.5 throughout the period, indicating that Tegna Inc had sufficient current assets to cover its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibited fluctuations in the company's ability to cover its short-term obligations. It started at a very low level of 0.11 in March 2020 and showed significant volatility before reaching a peak of 3.07 in June 2024. This increase reflects a strong improvement in Tegna Inc's ability to meet its short-term liabilities without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only includes cash and cash equivalents, followed a similar trend to the quick ratio. It also started low at 0.11 in March 2020 and increased over time, with a noticeable spike to 3.07 in June 2024. This indicates that Tegna Inc had a higher proportion of cash and cash equivalents in relation to its current liabilities by the end of the period, enhancing its short-term financial stability.
In conclusion, Tegna Inc improved its liquidity position over the analyzed period, as evidenced by the increasing current, quick, and cash ratios. However, the fluctuations seen in these ratios highlight the importance of monitoring liquidity regularly to ensure the company can meet its short-term obligations effectively.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 8.69 | 8.21 | 6.91 | 4.50 | 5.04 | 4.71 | 5.32 | 4.74 | 5.31 | 5.02 | 5.41 |
The cash conversion cycle of Tegna Inc, a media company, fluctuated over the past few years. The cash conversion cycle is a key metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From the data provided:
- Tegna Inc's cash conversion cycle ranged from a low of 4.50 days (December 31, 2021) to a high of 8.69 days (September 30, 2022) during the period specified.
- A lower cash conversion cycle indicates that the company is able to convert its investments into cash more quickly, which is generally favorable.
- However, the cash conversion cycle increased significantly in the latter half of 2022, peaking at 8.69 days on September 30, 2022.
- Interestingly, the cash conversion cycle dropped to 0.00 days from December 31, 2022, through the end of 2024. This could suggest a change in the company's operations or financial reporting practices.
Overall, a low and stable cash conversion cycle is typically desirable as it signifies efficient operations and a quicker turnaround of investment into cash. Tegna Inc should monitor its cash conversion cycle closely to ensure efficient working capital management and operational effectiveness.