Westinghouse Air Brake Technologies Corp (WAB)

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 1.30 1.30 1.38 1.52 1.20 1.19 1.12 1.08 1.25 1.26 1.27 1.36 1.32 1.34 1.34 1.19 1.20 1.22 1.14 1.42
Quick ratio 0.49 0.47 0.51 0.59 0.45 0.45 0.39 0.38 0.46 0.46 0.47 0.52 0.54 0.50 0.52 0.46 0.49 0.49 0.45 0.77
Cash ratio 0.19 0.11 0.16 0.20 0.15 0.10 0.09 0.10 0.15 0.15 0.16 0.17 0.16 0.16 0.16 0.15 0.19 0.17 0.17 0.21

Westinghouse Air Brake Technologies Corp's liquidity ratios indicate its ability to meet short-term obligations. The current ratio has fluctuated over the reported periods, ranging from 1.08 to 1.52, with a general trend of maintaining a ratio above 1, suggesting the company has sufficient current assets to cover its current liabilities.

The quick ratio, which excludes inventory from current assets, shows a similar fluctuation but generally remains lower than the current ratio. This indicates that the company may have some dependency on inventory to meet its short-term obligations.

Lastly, the cash ratio reflects the company's ability to cover its current liabilities using only cash and cash equivalents. This ratio has also varied but generally remains at low levels, signaling that Westinghouse Air Brake Technologies Corp relies more on other current assets besides cash to fulfill its short-term financial obligations.

Overall, the liquidity ratios of Westinghouse Air Brake Technologies Corp demonstrate a mixed performance, with the current ratio generally above 1, indicating an adequate short-term liquidity position, while the quick and cash ratios suggest a reliance on assets beyond cash to meet immediate financial demands.

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 83.31 91.25 89.86 91.77 90.90 97.78 99.34 93.87 84.03 88.67 86.12 87.62 87.64 85.25 84.52 88.59 87.86 90.71 85.28 106.67

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales. For Westinghouse Air Brake Technologies Corp, the cash conversion cycle has shown some fluctuations over the periods analyzed.

From March 31, 2020, to June 30, 2022, the cash conversion cycle generally decreased from 106.67 days to 86.12 days, indicating an improvement in the efficiency of the company's working capital management. This trend suggests that Westinghouse Air Brake Technologies Corp was able to speed up the conversion of inventory into sales and subsequently into cash during this period.

However, from March 31, 2022, to December 31, 2024, the cash conversion cycle exhibited some variability, with periods of slight increases and decreases. Overall, the cycle remained relatively stable between 83.31 days and 99.34 days during this timeframe.

In summary, Westinghouse Air Brake Technologies Corp has shown a mixed performance in managing its cash conversion cycle in the recent periods. While the company demonstrated improved efficiency in working capital management in the earlier years, it faced some challenges in maintaining this level of efficiency in the later periods. Monitoring the cash conversion cycle is crucial for assessing the company's liquidity and operational efficiency.