Werner Enterprises Inc (WERN)

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 1.92 1.96 1.93 2.34 2.46 2.41 1.64 2.34 2.35 2.18 2.57 1.73 1.67 1.81 1.73 1.51 1.51 1.31 1.98 1.41
Quick ratio 1.54 1.50 1.54 1.96 2.03 2.04 1.14 1.98 1.93 1.81 2.25 1.40 1.37 1.48 1.46 1.26 1.15 1.02 1.65 1.17
Cash ratio 0.19 0.13 0.15 0.43 0.35 0.42 0.12 0.43 0.20 0.17 0.74 0.27 0.11 0.16 0.26 0.24 0.09 0.04 0.20 0.20

The liquidity ratios of Werner Enterprises, Inc. for the past eight quarters exhibit certain trends and fluctuations. The current ratio, a measure of the company's ability to cover its short-term liabilities with current assets, decreased from Q4 2022 to Q2 2023 but showed an improvement in Q3 2023 and Q4 2023. This suggests that the company may have better liquidity to meet its short-term obligations in the most recent quarters compared to the earlier ones.

The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, displays a similar pattern to the current ratio. It declined from Q4 2022 to Q2 2023 before rebounding in Q3 2023 and Q4 2023. This indicates that Werner Enterprises may have a healthy level of liquid assets to cover its short-term liabilities in the latest quarters.

The cash ratio, which measures the company's ability to pay off its current liabilities solely with available cash and cash equivalents, also showcases fluctuations over the eight quarters. The ratio improved from Q4 2022 to Q1 2023, then declined in Q2 2023, before showing some recovery in Q3 2023 and Q4 2023. Despite the fluctuations, the cash ratio generally remained above 0.50, indicating that Werner Enterprises has a reasonable level of cash on hand to manage its short-term obligations across the quarters.

Overall, the liquidity ratios of Werner Enterprises, Inc. show a general trend of fluctuation over the past eight quarters, with some improvements in the most recent periods. It appears that the company may have effectively managed its liquidity position to ensure it can meet its short-term financial obligations.

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 30.52 31.72 31.70 32.45 40.09 39.05 37.32 36.99 44.11 40.85 35.81 25.36 33.80 26.78 25.92 26.05 26.99 27.29 27.42 23.13

The cash conversion cycle of Werner Enterprises, Inc. has shown some fluctuations over the past year, ranging from a low of 51.58 days in Q2 2023 to a high of 76.97 days in Q2 2022. The cycle measures the average number of days it takes for the company to convert its resources into cash flows, indicating its efficiency in managing working capital.

In the most recent quarter, Q4 2023, the company's cash conversion cycle was 52.29 days, slightly lower compared to the previous quarter at 52.31 days. This suggests that Werner Enterprises improved its ability to generate cash from its operations efficiently during this period.

Overall, the downward trend in the cash conversion cycle from Q2 2022 to Q2 2023 indicates that the company has been more effective in managing its inventory, accounts receivable, and accounts payable levels. A shorter cash conversion cycle generally indicates better liquidity management and operational efficiency, enabling the company to convert its assets into cash more quickly.

However, it is crucial for Werner Enterprises to monitor and optimize its cash conversion cycle continuously to ensure sustainable cash flows and profitability in the long term.