Woodward Inc (WWD)
Liquidity ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.89 | 1.96 | 2.62 | 2.65 | 2.38 | 2.54 | 2.21 | 2.15 | 2.43 | 2.95 | 3.61 | 4.39 | 4.00 | 4.24 | 4.01 | 3.80 | 3.09 | 2.31 | 2.25 | 1.68 |
| Quick ratio | 0.82 | 0.88 | 1.27 | 1.10 | 1.03 | 1.02 | 0.86 | 0.71 | 0.89 | 1.02 | 1.48 | 2.13 | 2.13 | 2.21 | 2.03 | 1.67 | 1.37 | 0.87 | 0.90 | 0.66 |
| Cash ratio | 0.31 | 0.34 | 0.46 | 0.25 | 0.22 | 0.19 | 0.19 | 0.16 | 0.20 | 0.23 | 0.56 | 1.29 | 1.22 | 1.06 | 0.84 | 0.61 | 0.38 | 0.18 | 0.17 | 0.18 |
Woodward Inc's liquidity ratios have fluctuated over the past few quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has shown a general decreasing trend from 4.39 in Dec 2021 to 1.89 in Sep 2024. This suggests a potential decrease in the company's short-term liquidity position over time.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also displays a similar trend, with a decline from 2.13 in Dec 2021 to 0.82 in Sep 2024. This indicates that Woodward Inc may have fewer liquid assets to cover its short-term obligations without relying on inventory.
On the other hand, the cash ratio, which focuses solely on the most liquid assets like cash and equivalents to current liabilities, has varied significantly. The ratio has shown an increase from 0.17 in Dec 2019 to a peak of 1.29 in Mar 2022 before falling to 0.31 in Sep 2024. This implies that while the company had a strong cash position at one point, it has declined in recent quarters.
Overall, Woodward Inc's liquidity ratios suggest a mixed picture with potential liquidity challenges, especially in the most recent quarter. Management may need to closely monitor the company's liquidity position and take appropriate actions to ensure its ability to meet short-term obligations.
Additional liquidity measure
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 94.85 | 104.29 | 108.69 | 101.65 | 104.09 | 110.69 | 118.00 | 111.92 | 107.39 | 109.06 | 110.50 | 98.53 | 102.16 | 116.37 | 119.08 | 107.66 | 108.03 | 123.36 | 115.89 | 103.85 |
The cash conversion cycle of Woodward Inc has shown varying trends over the past few quarters. The cycle represents the time taken by the company to convert its investments in various resources into cash flow from sales.
Analyzing the data from the table, we can observe fluctuations in Woodward Inc's cash conversion cycle. The cycle was relatively stable around the 100-day mark in the recent quarters, with slight increases and decreases. In the most recent quarter, the cash conversion cycle was 94.85 days, indicating an improvement compared to the previous quarter when it was 104.29 days.
Overall, Woodward Inc's cash conversion cycle has shown some volatility but has generally been within a range of approximately 94 to 119 days over the past few quarters. It is essential for the company to closely monitor and manage this cycle to ensure efficient management of its working capital and cash flow operations.