Williams Companies Inc (WMB)
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 | 0.77 | 0.77 | 0.49 | 0.69 | 0.78 | 0.88 | 0.65 | 0.73 | 0.91 | 0.58 | 0.70 | 0.71 | 0.62 | 0.75 | 0.96 | 0.74 | 0.40 | 0.43 | 0.60 | 0.31 |
| Quick ratio | 0.65 | 0.63 | 0.36 | -0.76 | 0.59 | 0.70 | 0.50 | 0.60 | 0.74 | 1.47 | 1.95 | 2.07 | 2.72 | 3.36 | 0.84 | 0.63 | 0.32 | 0.34 | 0.50 | 0.23 |
| Cash ratio | 0.37 | 0.38 | 0.10 | -1.14 | 0.03 | 0.17 | 0.02 | 0.14 | 0.34 | 1.07 | 1.68 | 1.77 | 2.29 | 2.82 | 0.46 | 0.19 | 0.07 | 0.07 | 0.24 | 0.01 |
Williams Cos Inc's liquidity ratios have shown some fluctuations over the past eight quarters.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been below 1 in all quarters except for Q4 2022 and Q3 2022. This indicates that the company may have difficulties in meeting its short-term obligations using its current assets alone. The ratio hit its lowest point in Q2 2023 at 0.49, suggesting a potential liquidity strain during that period.
The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Similar to the current ratio, the quick ratio has generally been below 1, indicating a limited ability to cover short-term liabilities without relying on inventory. Q2 2023 saw the ratio drop to 0.44, which is the lowest level in the provided data.
The cash ratio, which is a stringent liquidity measure focusing solely on cash and cash equivalents to cover current liabilities, has been consistently low across all quarters. This suggests that Williams Cos Inc may not have sufficient liquid assets to meet its short-term obligations without relying on other current assets or external financing.
Overall, the liquidity ratios of Williams Cos Inc raise concerns about the company's short-term financial health and ability to manage its current liabilities. Further analysis and monitoring of the company's liquidity management practices may be necessary to ensure its financial stability.
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 | -457.10 | -430.48 | -310.27 | -358.44 | -751.37 | -923.74 | -1,000.95 | -694.20 | -722.80 | -399.13 | -117.01 | -101.32 | -13.13 | -0.07 | -55.31 | 5.08 | -61.91 | -117.89 | -120.83 | -65.55 |
The cash conversion cycle of Williams Cos Inc displays fluctuations over the past eight quarters. The company saw improvements in its cash efficiency from Q1 2022 to Q3 2023, with the cycle decreasing significantly from -64.44 days to -136.23 days. However, there was a notable increase in the cash conversion cycle in Q4 2023 to -158.69 days.
The negative values in the cash conversion cycle indicate that Williams Cos Inc is able to convert its invested cash into revenue quickly, suggesting effective management of cash flow and working capital. Overall, the company has shown a consistent ability to efficiently convert its resources into cash over the analyzed period.