Westinghouse Air Brake Technologies Corp (WAB)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.30 | 1.20 | 1.25 | 1.32 | 1.20 |
| Quick ratio | 0.49 | 0.48 | 0.46 | 0.54 | 0.49 |
| Cash ratio | 0.19 | 0.19 | 0.15 | 0.16 | 0.19 |
Westinghouse Air Brake Technologies Corp's liquidity ratios show a mixed performance over the five-year period from 2020 to 2024. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, improved from 1.20 in 2020 to 1.32 in 2021, indicating a stronger liquidity position. However, it declined to 1.25 in 2022 before fluctuating between 1.20 and 1.30 in the subsequent years.
The quick ratio, a stricter measure of liquidity that excludes inventory from current assets, also displayed variability. Starting at 0.49 in 2020, the ratio increased to 0.54 in 2021, but then decreased to 0.46 in 2022. Subsequently, it hovered around 0.48 to 0.49 in 2023 and 2024, showing limited improvement.
The cash ratio, which reflects the company's ability to cover current liabilities with its cash and cash equivalents, decreased from 0.19 in 2020 to 0.15 in 2022, indicating potential challenges in meeting short-term obligations. However, it rebounded to 0.19 in 2023 and 2024, suggesting an enhanced cash position in those years.
In summary, Westinghouse Air Brake Technologies Corp's liquidity ratios demonstrate some fluctuations over the period, with varying levels of liquidity and short-term solvency. Continuous monitoring and management of liquidity will be essential to ensure the company's ability to meet its financial obligations effectively.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 82.63 | 90.32 | 83.58 | 87.15 | 87.31 |
Based on the data provided, the cash conversion cycle of Westinghouse Air Brake Technologies Corp has shown some fluctuations over the years.
At the end of December 2020, the company's cash conversion cycle was 87.31 days, which decreased slightly to 87.15 days by the end of December 2021. The cycle then improved to 83.58 days by December 31, 2022. However, there was an increase in the cycle to 90.32 days by December 31, 2023.
The most recent data available, as of December 31, 2024, shows a lower cash conversion cycle of 82.63 days. This indicates that the company has been managing its cash flow and working capital efficiency better compared to the previous year.
Overall, the trend in the cash conversion cycle suggests that Westinghouse Air Brake Technologies Corp has been making efforts to optimize its cash conversion process, with some fluctuations observed in the cycle over the years.