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Company liquidity can be very useful in determining the financial health of a firm. Sources of liquidity - such as cash and securities - not only allow a company to continue operations in the short term, but it also finances investments for longer-term growth. We ran a screen with this in mind.

To start, we screened for stocks seeing consistent increases in liquidity, measured by the current ratio (current assets/current liabilities), over the past four years.

We wanted to identify at least one fundamental statistic which may have contributed to the rising current ratio. A company's current assets consists of its cash, inventory, and receivables, so we looked for stocks exhibiting strong sales trends by comparing growth in revenue to growth in accounts receivable and inventory.

Accounts receivable is the portion of revenue not yet received, and since there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables, the healthier the company's revenue. We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as stocks with accounts receivable comprising a smaller portion of current assets over the same time period.

We then looked for stocks with faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.

The List

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think these companies have sustainable operations? Use this list as a starting point for your own analysis.

1. Cabela's Inc. (NYSE:CAB): Operates as a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise.

  • Market cap at $4.78B, most recent closing price at $67.81.
  • Current Ratio increased from 1.86 to 1.97 during the first time interval (52 weeks ending 2011-01-01 vs. 53 weeks ending 2010-01-02). For the second time interval, the Current Ratio increased from 1.97 to 2.54 (52 weeks ending 2011-12-31 vs. 52 weeks ending 2011-01-01). And for the final time interval, the Current Ratio increased from 2.54 to 3.21 (52 weeks ending 2012-12-29 vs. 52 weeks ending 2011-12-31).
  • Revenue grew by 28.71% during the most recent quarter ($802.5M vs. $623.5M y/y). Accounts receivable grew by 14.6% during the same time period ($3,408.4M vs. $2,974.18M y/y). Receivables, as a percentage of current assets, decreased from 77.62% to 74.87% during the most recent quarter (comparing 13 weeks ending 2013-03-30 to 13 weeks ending 2012-03-31).
  • Inventory grew by 13.66% during the same time period ($613.07M vs. $539.41M y/y). Inventory, as a percentage of current assets, decreased from 14.08% to 13.47% during the most recent quarter (comparing 13 weeks ending 2013-03-30 to 13 weeks ending 2012-03-31).

Cabela has benefited immensely from what has essentially been panic gun buying in the face of impending gun control legislation. The Associated Press reports the company saw a 73% jump in profit last quarter due to increased demand for guns and ammunition. In fact, without the firearms and ammunition sales, last quarter's same-store revenue falls from 24% to 9%, which Marketwatch notes is above average for its sector and better than the combined same-stores sales of competitors Big 5 Sporting Goods (NASDAQ:BGFV), Dick's Sporting Goods, Inc. (NYSE:DKS), and Hibbett Sports Inc. (NASDAQ:HIBB)

Given the sporting goods store's stellar same-store performance, it's no wonder that Cabela's plans to expand and open 11 new stores within the next two years. The company currently has 44 brick-and-mortar locations in the U.S. and Canada and will open two new Denver outposts this August as well as a Portland-area store in 2014.

2. GrafTech International Ltd. (NYSE:GTI): Manufactures graphite and carbon material science-based solutions.

  • Market cap at $1.05B, most recent closing price at $7.80.
  • Current Ratio increased from 2.38 to 2.47 during the first time interval (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). For the second time interval, the Current Ratio increased from 2.47 to 2.64 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). And for the final time interval, the Current Ratio increased from 2.64 to 3.35 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).
  • Revenue grew by 5.31% during the most recent quarter ($253.73M vs. $240.94M y/y). Accounts receivable grew by -0.61% during the same time period ($188.76M vs. $189.91M y/y). Receivables, as a percentage of current assets, decreased from 24.14% to 23.7% during the most recent quarter (comparing 3 months ending 2013-03-31 to 3 months ending 2012-03-31).
  • Inventory grew by -3.03% during the same time period ($538.22M vs. $555.04M y/y). Inventory, as a percentage of current assets, decreased from 70.55% to 67.58% during the most recent quarter (comparing 3 months ending 2013-03-31 to 3 months ending 2012-03-31).

While increased graphic electrode sales volume helped drive up GrafTech's Industrial Materials segment revenue during the first quarter of 2013, the company's profit suffered thanks to higher raw material costs and competitive pricing, particularly in China. The graphite electrode market is already overcrowded, and with Chinese businesses hoping to have 100,000 tons of graphite electrode capacity operational by 2014, GrafTech's order book is only 80% full. In a call to discuss first quarter earnings, CEO Craig Shular made it clear that the only way for the order book to be completely filled is via a revitalized non-residential construction industry.

Last quarter, GrafTech's Engineered Solutions segment's revenue fell by 6% to $45 million compared to the first quarter of 2012. However, in its first quarter earnings report, the graphite electrodes manufacturer noted that demand for thermal management solutions in the advanced consumer electronics industry had been increasing since the beginning of the second quarter. Through this business, GrafTech provides graphite heat spreaders that help cool and shield consumer electronic devices like smartphones and flat-screen TV's.

3. Universal Corp. (NYSE:UVV): Operates as a leaf tobacco merchant and processor worldwide.

  • Market cap at $1.38B, most recent closing price at $59.28.
  • Current Ratio increased from 2.73 to 2.75 during the first time interval (12 months ending 2010-03-31 vs. 12 months ending 2009-03-31). For the second time interval, the Current Ratio increased from 2.75 to 3.08 (12 months ending 2011-03-31 vs. 12 months ending 2010-03-31). And for the final time interval, the Current Ratio increased from 3.08 to 4.31 (12 months ending 2012-03-31 vs. 12 months ending 2011-03-31).
  • Revenue grew by 1.13% during the most recent quarter ($680.03M vs. $672.42M y/y). Accounts receivable grew by -12.3% during the same time period ($357.33M vs. $407.45M y/y). Receivables, as a percentage of current assets, decreased from 23.79% to 20.52% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • Inventory grew by -9.23% during the same time period ($921.34M vs. $1,014.98M y/y). Inventory, as a percentage of current assets, decreased from 59.27% to 52.9% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).

During the last nine months of 2012, Universal Corp. saw a 1% increase in revenue to $1.8 billion, most of which can be attributed to high volumes from 2012's carryover crop sales in South America and Africa as well as faster shipments. As the world's largest independent tobacco merchant, Universal Corp's performance has been buoyed by 2012's global flue-cured tobacco production, which, per Seeking Alpha contributor Nick Clayton, grew by 1.9% from 2011's production and comprised 90% of the company's 2012 revenue.

Presently, E.U. ministers are in talks to ban flavored cigarettes, following legislation implemented in Australia, Brazil, and the U.S. While it may seem like such measures would negatively impact Universal Corp., an April report from North Carolina State University notes that bans of flavored cigarettes may lead to increased demand for flue tobacco to make tobacco blends more palatable. Flue tobacco production primarily takes place in Brazil, the U.S., and Zimbabwe, and Universal Corp. operates in all three locations.

*Accounting data sourced from Google Finance. EPS data sourced from Yahoo! Finance. All other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure: Business relationship disclosure: Kapitall is a team of analysts. This article was written by Mary-Lynn Cesar, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.

Source: 3 Highly Liquid Stocks With Encouraging Sales Trends