Wabash National Corporation (WNC)

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 1.93 1.88 1.99 1.87 1.93 1.83 1.68 1.61 1.71 1.70 1.63 1.87 1.83 2.02 2.08 2.08 2.31 2.02 2.17 2.14
Quick ratio 0.37 0.24 0.24 0.31 0.51 0.27 0.23 0.16 0.17 0.21 0.32 0.20 0.25 0.17 0.48 0.57 0.92 0.77 0.59 0.57
Cash ratio 0.37 0.24 0.24 0.31 0.51 0.27 0.23 0.16 0.17 0.21 0.32 0.20 0.25 0.17 0.48 0.57 0.92 0.77 0.59 0.57

The liquidity ratios for Wabash National Corporation indicate the company's ability to meet its short-term obligations.

The current ratio, which measures the company's ability to cover its current liabilities with its current assets, has been relatively stable over the years, hovering around 2. However, there has been a slight decline in recent periods, dropping to 1.93 by the end of December 2024. This may indicate a decrease in the company's short-term liquidity position.

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 has exhibited more volatility compared to the current ratio, with fluctuations between 0.16 and 0.92 over the years. The ratio reached its lowest point of 0.16 on March 31, 2023, which may suggest a potential liquidity strain during that period.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also displayed fluctuations similar to the quick ratio. As of December 31, 2024, the cash ratio stands at 0.37, reflecting an improvement compared to previous periods.

In summary, while the current ratio for Wabash National Corporation has remained relatively stable, the quick ratio and cash ratio have shown more variability, indicating potential fluctuations in the company's short-term liquidity position. Investors and stakeholders should closely monitor these ratios to assess the company's ability to meet its upcoming financial obligations.

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 56.06 52.77 52.31 51.47 47.85 59.46 57.70 52.47 40.84 55.06 58.00 59.78 53.98 61.99 65.58 62.98 45.21 50.03 44.08 47.28

The cash conversion cycle for Wabash National Corporation has shown some fluctuation over the years. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales to customers.

From March 2020 to December 2024, the cash conversion cycle ranged between 40.84 days to 65.58 days. A lower number of days typically indicates that the company is efficiently managing its working capital and assets to generate cash. On the other hand, a higher number of days may suggest inefficiencies in managing inventory levels, collecting receivables, or paying suppliers.

Wabash National Corporation's cash conversion cycle decreased notably from March 2022 to December 2022, indicating improved efficiency in converting its investments into cash. However, there was a slight increase in the cycle from March 2023 to June 2024, indicating a potential slowdown in the conversion process.

Overall, monitoring the cash conversion cycle can provide insights into the company's liquidity, operational efficiency, and effectiveness in managing working capital. It is crucial for Wabash National Corporation to continue optimizing its inventory management, accounts receivable collection, and accounts payable practices to maintain a healthy cash conversion cycle.