Tootsie Roll Industries Inc (TR)
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 | 3.82 | 3.59 | 3.73 | 3.76 | 3.59 | 3.18 | 3.46 | 3.94 | 3.43 | 3.19 | 3.40 | 3.43 | 3.36 | 2.94 | 3.67 | 4.43 | 4.58 | 4.03 | 3.83 | 4.33 |
| Quick ratio | 2.23 | 1.71 | 1.52 | 1.83 | 1.81 | 1.28 | 1.20 | 1.60 | 1.66 | 1.44 | 1.49 | 1.81 | 1.82 | 1.22 | 1.84 | 2.71 | 2.98 | 2.13 | 2.21 | 2.81 |
| Cash ratio | 2.23 | 1.71 | 1.52 | 1.83 | 1.81 | 1.28 | 1.20 | 1.60 | 1.66 | 1.44 | 1.49 | 1.81 | 1.82 | 1.22 | 1.84 | 2.71 | 2.98 | 2.13 | 2.21 | 2.81 |
Tootsie Roll Industries Inc's liquidity ratios indicate its ability to meet short-term obligations. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has been fluctuating over the years but generally remains above 3, indicating a strong liquidity position. However, there was a slight decline in the current ratio in the recent quarters, which may warrant some attention.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown fluctuations, ranging from around 1.2 to 2.9. This ratio provides a more conservative assessment of the company's ability to meet short-term obligations without relying on inventory, and although it has varied, it generally suggests a sound liquidity position.
The cash ratio, which focuses solely on cash and cash equivalents to cover current liabilities, mirrors the trend seen in the quick ratio. Tootsie Roll Industries Inc's cash ratio has fluctuated but generally remains above 1, indicating that the company can meet its short-term obligations with its available cash reserves.
Overall, Tootsie Roll Industries Inc maintains a healthy liquidity position, as evidenced by its current, quick, and cash ratios. However, the recent decline in these ratios raises a flag and highlights the importance of monitoring the company's liquidity management closely to ensure it can continue to meet its short-term financial commitments 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 | 60.42 | 71.75 | 94.77 | 77.98 | 67.03 | 76.86 | 104.90 | 84.07 | 67.71 | 74.17 | 88.30 | 62.06 | 54.53 | 76.01 | 98.98 | 83.08 | 72.32 | 85.92 | 109.53 | 78.84 |
Tootsie Roll Industries Inc has shown varying cash conversion cycle (CCC) values over the periods from March 31, 2020, to December 31, 2024. The CCC measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The company's CCC ranged from a high of 109.53 days on June 30, 2020, to a low of 54.53 days on December 31, 2021. A lower CCC indicates a more efficient cash flow cycle, whereas a higher CCC suggests inefficiency in managing working capital.
Overall, the company has experienced fluctuations in its CCC, with some quarters showing improvements in cash conversion efficiency, while others showing delays. Monitoring and managing the components that contribute to the CCC, such as inventory turnover, accounts receivable collection period, and accounts payable period, are crucial for enhancing liquidity and operational efficiency.