Whirlpool Corporation (WHR)

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	0.89	0.87	0.87	1.02	1.08	1.16	1.11	1.08	1.14	1.17	1.20	1.23	1.10	1.02	0.98	0.95	0.88	0.87	0.84	0.83
Quick ratio	0.45	0.42	0.42	0.50	0.60	0.62	0.57	0.60	0.72	0.73	0.77	0.68	0.72	0.69	0.59	0.56	0.50	0.42	0.35	0.34
Cash ratio	0.23	0.16	0.18	0.23	0.34	0.26	0.22	0.26	0.36	0.35	0.38	0.31	0.35	0.39	0.33	0.33	0.23	0.12	0.12	0.12

The analysis of Whirlpool Corp.'s liquidity ratios reveals a concerning trend over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has been on a decline, falling from a high of 1.16 in Q3 2022 to a low of 0.89 in Q4 2023. This downward trend indicates that the company may be facing challenges in meeting its short-term financial obligations.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also decreased over the same period. The ratio dropped from 0.74 in Q3 2022 to 0.55 in Q4 2023, signaling potential difficulties for Whirlpool Corp. in meeting its immediate payment obligations without relying on selling inventory.

Furthermore, the cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents alone, has shown a decreasing pattern, suggesting a decline in the company's ability to settle its short-term debts with readily available cash. The ratio fell from 0.39 in Q3 2022 to 0.33 in Q4 2023.

Overall, the deteriorating liquidity ratios of Whirlpool Corp. raise concerns about the company's short-term financial health and ability to manage its obligations. Management should closely monitor these ratios and take proactive measures to improve liquidity and strengthen the company's financial position.

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	2.74	18.55	15.31	12.93	7.48	14.58	13.95	9.02	2.36	9.73	8.03	9.06	5.33	10.81	12.79	4.47	-2.24	19.37	18.19	14.44

The cash conversion cycle for Whirlpool Corp. has shown some fluctuations over the last eight quarters. In Q4 2023, the company's cash conversion cycle was negative (-1.59 days), indicating that Whirlpool was able to convert its inventory into cash before paying its suppliers and creditors. However, this can also suggest potential inefficiencies in the company's working capital management.

The cash conversion cycle increased to 11.39 days in Q3 2023, which may signal slower inventory turnover or delays in collecting receivables. This trend continued in Q2 2023, with a further increase to 8.73 days, reflecting a longer time taken to convert inventory and receivables into cash.

In Q1 2023, the cash conversion cycle decreased to 5.51 days, indicating an improvement in the efficiency of working capital management compared to the previous quarter. This suggests that Whirlpool may have streamlined its operations or enhanced its collection process.

When compared to the same quarter in the previous year, Q4 2022 showed a cash conversion cycle of 0.56 days, which was significantly shorter than the Q4 2023 cycle. This may suggest that Whirlpool faced challenges in managing its working capital efficiency or experienced disruptions in its supply chain or sales cycle.

Overall, Whirlpool Corp. should continue monitoring its cash conversion cycle to ensure efficient management of working capital, timely collection of receivables, and optimization of inventory turnover to support its financial performance and sustainability.