Whirlpool Corporation (WHR)

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 0.72 0.94 0.96 0.95 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
Quick ratio 0.35 0.46 0.45 0.45 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
Cash ratio 0.17 0.18 0.19 0.19 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

Whirlpool Corporation's liquidity ratios show some fluctuations over the period analyzed.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally improved from 0.95 in March 2020 to a peak of 1.23 in March 2021, before declining to 0.72 by December 2024. This indicates that the company's short-term liquidity position strengthened initially but deteriorated towards the end of the period.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also displays a similar trend, albeit with more fluctuations. The quick ratio ranged from a low of 0.42 in June 2023 to a high of 0.77 in June 2021, showing some volatility in the company's ability to cover its short-term obligations without relying on inventory.

The cash ratio, which provides insight into the company's ability to pay off its current liabilities using only its cash and cash equivalents, also experienced fluctuations, ranging from 0.16 in September 2023 to 0.39 in September 2020. This ratio indicates the company's reliance on cash reserves to meet its short-term obligations.

Overall, Whirlpool Corporation's liquidity ratios show variability over the period, with some improvement in liquidity initially but a slight decline towards the end of the analyzed timeframe. It is essential for the company to monitor and manage its liquidity position effectively to ensure it can meet its short-term obligations in a sustainable manner.

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 -3.79 9.32 9.49 12.94 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

The cash conversion cycle for Whirlpool Corporation has fluctuated over the specified periods, ranging from negative days to 18.55 days. The cash conversion cycle represents the time it takes for a company to convert its investment in inventory into cash flows from sales.

During the analysis period, the company experienced significant variations in its cash conversion cycle, suggesting fluctuations in its working capital management efficiency. For instance, the cycle spiked to 18.55 days by September 30, 2023, indicating a prolonged period for conversion of inventory to cash during that quarter.

On the other hand, the cycle showed improvement by December 31, 2024, when it recorded a negative value of -3.79 days. This negative value suggests that the company was able to convert its inventory into cash before actually paying its suppliers, reflecting a more efficient working capital management strategy during that particular period.

Overall, monitoring the cash conversion cycle is crucial for assessing a company's liquidity and operational efficiency, as it provides insights into how effectively the company manages its cash flows, inventory, and accounts receivable.