Wabash National Corporation (WNC)

Based on the liquidity ratios of Wabash National Corp. over the past eight quarters, we can see a fluctuating trend in the company's ability to meet its short-term obligations.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown some volatility ranging from 1.61 to 1.93. The current ratio has generally been above 1, indicating that Wabash National Corp. has had more than enough current assets to cover its current liabilities over the period, with the ratio peaking in Q4 2023.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown fluctuations. The quick ratio has varied between 0.87 and 1.17 over the past eight quarters. The company's quick ratio has generally been lower than the current ratio, which suggests that inventory plays a significant role in the liquidity position of Wabash National Corp.

Furthermore, the cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents relative to current liabilities, has shown significant variation from 0.26 to 0.66. This indicates that the company may have been less capable of meeting its short-term liabilities solely with its cash holdings, with an improvement in Q4 of 2023.

Overall, while the current ratio has generally been above 1, indicating a relatively healthy liquidity position for Wabash National Corp., the fluctuations in the quick and cash ratios suggest that the company could potentially face challenges in quickly meeting its short-term obligations without relying on inventory or non-cash assets. It would be advisable for investors and analysts to closely monitor these liquidity ratios to assess the company's ability to manage its short-term financial obligations effectively.

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Additional liquidity measure

The cash conversion cycle of Wabash National Corp. has shown fluctuations over the past eight quarters, ranging from a low of 39.41 days in Q2 2022 to a high of 59.92 days in Q1 2022.

In general, a shorter cash conversion cycle indicates more efficient management of working capital, as the company is able to quickly convert its investments in inventory into cash from sales. Conversely, a longer cash conversion cycle suggests that the company may be facing challenges in converting its investments into cash, possibly due to slower inventory turnover or longer collection periods from customers.

Wabash National Corp. experienced an improvement in its cash conversion cycle in the most recent quarter (Q4 2023) compared to the preceding quarters. This could indicate that the company has been more effective in managing its inventory levels, collecting receivables, and managing its payables, leading to a more efficient cash conversion cycle.

Further analysis of the components of the cash conversion cycle, including days inventory outstanding, days sales outstanding, and days payables outstanding, would provide additional insights into the company's working capital management and overall financial health.