Agilent Technologies Inc (A)

Agilent Technologies Inc's liquidity ratios have fluctuated over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, decreased from 2.61 in 2023 to 2.09 in 2024. This suggests a slight decrease in the company's liquidity position compared to the previous year.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also showed a decreasing trend from 1.86 in 2023 to 1.48 in 2024. This indicates a potential decrease in the company's ability to cover its short-term liabilities with its most liquid assets.

The cash ratio, which provides insight into the company's ability to cover its current liabilities with its cash and cash equivalents, decreased significantly from 0.99 in 2023 to 0.70 in 2024. This suggests a lower level of cash liquidity relative to current liabilities in the most recent period.

Overall, the declining trend in liquidity ratios for Agilent Technologies Inc over the past year may indicate potential challenges in meeting short-term obligations with available assets. It is important for the company to closely monitor its liquidity position and manage its short-term assets and liabilities effectively to ensure financial stability.

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Additional liquidity measure

The cash conversion cycle of Agilent Technologies Inc has shown fluctuations over the past five years. In the most recent fiscal year ending on October 31, 2024, the company's cash conversion cycle was 115.44 days, slightly lower than the previous year's figure of 115.64 days. This indicates that Agilent took slightly less time to convert its investments into cash during the latest period.

Looking further back, in fiscal 2022, the cash conversion cycle was 113.91 days, showing a longer period than in the most recent year. The cycle significantly improved in fiscal 2021, where it took 101.81 days for Agilent to complete the cash conversion cycle. However, in fiscal 2020, the company experienced a slight increase in the cash conversion cycle to 108.88 days.

Overall, Agilent Technologies Inc has demonstrated variations in its cash conversion cycle over the last five years, with some years showing improvements and others showing small setbacks. Analyzing the cash conversion cycle can offer insights into the company's efficiency in managing its investments, inventory, and accounts receivable to generate cash flows.