Wabash National Corporation (WNC)

Based on the provided data for Wabash National Corporation, we observe the following trends in liquidity ratios:

1. Current Ratio:
- The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, decreased from 2.31 in 2020 to 1.83 in 2021 and further declined to 1.71 in 2022.
- However, there was a slight improvement in 2023, with the current ratio increasing to 1.93, and it remained stable at 1.93 in 2024.
- Overall, the current ratio fluctuated over the years, indicating some variability in the company's liquidity position.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets.
- Wabash National Corporation's quick ratio declined significantly from 0.92 in 2020 to 0.25 in 2021, indicating potential liquidity challenges.
- The ratio continued to decrease in 2022 to 0.17 before showing some improvement in 2023 and 2024, with values of 0.51 and 0.37 respectively.
- The declining trend in the quick ratio highlights potential difficulties in meeting short-term obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio, the most conservative liquidity ratio that only considers cash and cash equivalents, mirrored the trends seen in the quick ratio.
- Wabash National Corporation's cash ratio dropped from 0.92 in 2020 to 0.25 in 2021 and further decreased to 0.17 in 2022.
- Like the quick ratio, there was an improvement in the cash ratio in 2023 and 2024, with values of 0.51 and 0.37 respectively.
- The decrease in the cash ratio over the first few years suggests a potential strain on the company's ability to cover immediate obligations with its available cash resources.

In summary, the liquidity ratios of Wabash National Corporation show mixed performance over the period, with fluctuations and declines in certain ratios, indicating varying levels of liquidity and potential challenges in meeting short-term obligations. Investors and stakeholders should closely monitor these ratios to assess the company's liquidity position and financial health.

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Additional liquidity measure

The cash conversion cycle of Wabash National Corporation has shown fluctuations over the past five years. In 2020, the company's cash conversion cycle was 45.21 days, which increased to 53.98 days in 2021. However, there was a significant improvement in 2022, with the cycle decreasing to 40.84 days. Subsequently, in 2023, the cycle increased slightly to 47.93 days, and further increased to 56.18 days by the end of 2024.

Overall, the trend in Wabash National Corporation's cash conversion cycle indicates some variability in how efficiently the company is managing its cash flow from operations. The increase in the cycle in certain years may suggest delayed collections from customers or increased payment periods to suppliers, affecting the company's working capital management. It is essential for the company to monitor and potentially optimize its cash conversion cycle to enhance liquidity and operational performance.