Tegna Inc (TGNA)
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 | 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 | 1.96 | 1.73 | 1.94 | 1.61 |
| Quick ratio | 2.35 | 3.27 | 3.29 | 3.52 | 3.13 | 2.47 | 2.22 | 1.84 | 1.91 | 1.90 | 2.48 | 1.99 | 1.48 | 2.07 | 2.13 | 1.83 | 1.84 | 1.49 | 1.81 | 1.48 |
| Cash ratio | 0.85 | 1.55 | 1.47 | 1.81 | 1.41 | 0.95 | 0.54 | 0.11 | 0.15 | 0.15 | 0.59 | 0.38 | 0.14 | 0.77 | 0.55 | 0.11 | 0.17 | 0.02 | 0.11 | 0.01 |
TEGNA Inc's liquidity ratios have shown a positive trend over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally improved, ranging from 2.48 in Q4 2023 to 3.70 in Q1 2023. This indicates that TEGNA Inc has sufficient current assets to meet its current liabilities.
The quick ratio, also known as the acid-test ratio, is a more stringent measure of liquidity as it excludes inventory from current assets. The quick ratio for TEGNA Inc mirrors the current ratio trend, reflecting the company's ability to cover its short-term liabilities without relying on the sale of inventory.
The cash ratio, which is the most conservative liquidity ratio, focuses solely on cash and cash equivalents to cover current liabilities. TEGNA Inc's cash ratio has also shown improvement, with values ranging from 0.30 in Q1 2022 to 1.99 in Q1 2023. This suggests that the company has increased its ability to meet its short-term obligations using cash on hand.
Overall, TEGNA Inc's liquidity ratios demonstrate a strong financial position with increasing liquidity over the past eight quarters. This indicates that the company has the capability to meet its short-term financial commitments and withstand any unexpected financial challenges.
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 | 65.30 | 62.42 | 59.88 | 62.24 | 66.13 | 66.31 | 69.64 | 73.93 | 76.14 | 71.51 | 71.33 | 76.75 | 65.43 | 68.94 | 74.82 | 81.62 | 97.92 | 88.04 | 73.58 | 75.65 |
The cash conversion cycle of TEGNA Inc has fluctuated over the past eight quarters as shown in the table. The cash conversion cycle measures the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, TEGNA Inc had a cash conversion cycle of 55.06 days, a slight increase from the previous quarter Q3 2023 which was 54.28 days. This indicates a slightly longer cycle for the company to convert its resources into cash during Q4 2023.
Comparing the most recent quarter with the performance in Q4 2022, where the cash conversion cycle was 58.35 days, there has been an improvement in efficiency as the cycle shortened.
Generally, a shorter cash conversion cycle is beneficial as it means the company is able to convert its investments into cash more quickly. However, the company should also ensure that a shorter cycle is not achieved at the expense of managing inventories effectively or extending payment terms to suppliers excessively.
TEGNA Inc should continue to monitor and analyze its cash conversion cycle to ensure efficient management of its working capital and operational performance.