WESCO International Inc (WCC)

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 2.20 2.21 2.28 2.21 2.48 2.36 2.40 2.39 2.18 2.21 2.12 2.11 2.08 1.98 1.82 2.05 1.84 2.20 2.36 2.67
Quick ratio 0.18 0.18 0.19 0.24 0.15 0.17 0.15 0.10 0.14 0.07 0.07 0.06 0.07 0.08 0.09 0.11 0.15 0.14 0.12 0.33
Cash ratio 0.18 0.18 0.19 0.24 0.15 0.17 0.15 0.10 0.14 0.07 0.07 0.06 0.07 0.08 0.09 0.11 0.15 0.14 0.12 0.33

WESCO International Inc's liquidity ratios show its ability to meet short-term obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 2 in recent quarters. This indicates that WESCO International Inc has a relatively strong liquidity position.

However, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has been relatively low, hovering around 0.1 to 0.2. This suggests that the company may have a limited ability to meet its short-term obligations without relying on inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has followed a similar trend to the quick ratio, indicating that WESCO International Inc's cash position may also be relatively constrained.

Overall, while the current ratio for WESCO International Inc appears healthy, the quick and cash ratios suggest that the company may face challenges in meeting its short-term obligations without relying on inventory or increasing its cash reserves.

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 74.32 77.19 73.92 73.59 74.33 73.53 75.20 79.19 76.20 78.33 73.41 69.75 67.46 67.29 65.52 71.84 78.99 103.04 128.23 51.09

The cash conversion cycle (CCC) is a crucial metric that reflects how long a company takes to convert its investments in inventory into cash flows from sales. The CCC for WESCO International Inc has fluctuated over the several quarters analyzed.

From March 2020 to June 2020, the CCC increased significantly from 51.09 days to 128.23 days, indicating a prolonged time for the company to convert its investments into cash. This could be due to various factors such as inventory management issues or slow collection of receivables.

Subsequently, there was a noticeable improvement in the CCC from June 2020 to December 2020, decreasing to 78.99 days. This improvement suggests that WESCO International Inc might have streamlined its operations, leading to a more efficient cash conversion process.

The CCC remained relatively stable from March 2021 to September 2021, hovering around 67-71 days, which could indicate that the company maintained its efficiency in managing its cash conversion cycle during that period.

From December 2021 to March 2024, the CCC showed some fluctuations within the range of 73-79 days. This variability suggests potential ongoing efforts by WESCO International Inc to optimize its inventory turnover, accounts receivable collection, and accounts payable management.

Overall, the trend in WESCO International Inc's cash conversion cycle indicates fluctuations with certain periods of improvement and stability. Continuous monitoring and analysis of the CCC can help the company identify operational inefficiencies and make strategic decisions to enhance its working capital management practices.