Werner Enterprises Inc (WERN)

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 1.52 1.53 1.69 1.90 1.92 1.96 1.93 2.34 2.46 2.41 1.64 2.34 2.29 2.18 2.62 1.73 1.67 1.81 1.73 1.51
Quick ratio 0.11 0.15 0.21 0.19 0.19 0.13 0.15 0.43 0.35 0.42 0.12 0.43 0.20 0.17 0.76 0.27 0.11 0.16 0.26 0.24
Cash ratio 0.11 0.15 0.21 0.19 0.19 0.13 0.15 0.43 0.35 0.42 0.12 0.43 0.20 0.17 0.76 0.27 0.11 0.16 0.26 0.24

Werner Enterprises Inc's liquidity ratios have demonstrated fluctuations over the past few years. The current ratio, which measures the company's ability to cover its short-term obligations with its short-term assets, has generally been trending upwards since March 31, 2020. It reached a peak of 2.46 as of December 31, 2022, before declining slightly to 1.52 by December 31, 2024.

In contrast, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown more variability. It ranged from a low of 0.11 as of December 31, 2020, to a high of 0.76 on June 30, 2021. The quick ratio has since stabilized around 0.15 to 0.21 from June 30, 2024, to December 31, 2024.

The cash ratio, which is the strictest measure of liquidity as it compares cash and equivalents to current liabilities, has followed a similar pattern to the quick ratio. It fluctuated between 0.11 and 0.76 from March 31, 2020, to June 30, 2021, before settling around 0.15 to 0.21 from June 30, 2024, to December 31, 2024.

Overall, while the current ratio has shown improvement and stability in recent periods, the quick ratio and cash ratio have exhibited more variability. It is important for Werner Enterprises Inc to maintain a healthy level of liquidity to meet its short-term obligations effectively and navigate any unexpected financial challenges.


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 1.86 1.96 2.05 2.17 2.28 2.20 2.06 1.91 1.92 1.75 1.79 1.85 1.80 2.03 2.17 2.26 2.30 1.77 1.61 1.46

Werner Enterprises Inc's cash conversion cycle has shown some fluctuations over the past few years based on the provided data. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2024, the cash conversion cycle for Werner Enterprises Inc ranged from a low of 1.46 days to a high of 2.30 days, indicating slight volatility in the company's operating efficiency during this period. However, it is important to note that the fluctuations were generally within a narrow range, suggesting that the company has been effectively managing its working capital.

In the most recent period as of December 31, 2024, the cash conversion cycle stood at 1.86 days, which is slightly lower than the cycle's peak seen in the past. This could potentially indicate improved efficiency in managing inventory, accounts receivable, and accounts payable.

Overall, although the cash conversion cycle has shown some variability, Werner Enterprises Inc appears to have maintained a relatively efficient working capital management system during the analyzed period. Further monitoring of this metric will be crucial to assess the company's ongoing operational effectiveness and financial health.