Agilent Technologies Inc (A)
Liquidity ratios
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.09 | 1.78 | 2.15 | 2.68 | 2.61 | 2.29 | 2.37 | 2.11 | 2.03 | 1.94 | 2.01 | 2.19 | 2.22 | 2.11 | 2.00 | 2.06 | 2.33 | 2.47 | 1.63 | 1.64 |
| Quick ratio | 1.48 | 1.26 | 1.49 | 1.88 | 1.86 | 1.52 | 1.55 | 1.40 | 1.37 | 1.27 | 1.35 | 1.49 | 1.65 | 1.60 | 1.40 | 1.53 | 1.77 | 1.74 | 1.14 | 1.16 |
| Cash ratio | 0.70 | 0.74 | 0.85 | 1.08 | 0.99 | 0.76 | 0.71 | 0.65 | 0.57 | 0.57 | 0.67 | 0.73 | 0.92 | 0.95 | 0.78 | 0.89 | 1.00 | 1.03 | 0.68 | 0.65 |
Agilent Technologies Inc's liquidity ratios have shown fluctuating trends over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has varied between 1.78 and 2.68. The current ratio stood at 2.09 as of October 31, 2024, indicating the company had $2.09 in current assets for every $1 in current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has ranged from 1.26 to 1.88. The quick ratio was 1.48 on October 31, 2024, meaning the company had $1.48 in liquid assets to cover each dollar of current liabilities.
The cash ratio, which is the most conservative liquidity ratio, measuring the company's ability to cover its current liabilities with cash and cash equivalents, has fluctuated between 0.57 and 1.08. As of October 31, 2024, the cash ratio was 0.70, indicating the company had $0.70 in cash and cash equivalents for every dollar of current liabilities.
Overall, Agilent Technologies Inc's liquidity ratios depict a solid ability to meet its short-term obligations, with current and quick ratios consistently above 1.0 and generally improving over time. However, the cash ratio shows a slight decline in the company's cash position relative to its current liabilities.
Additional liquidity measure
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 115.97 | 105.82 | 106.60 | 107.24 | 115.40 | 111.52 | 118.45 | 119.23 | 113.81 | 108.06 | 102.58 | 99.42 | 101.68 | 98.79 | 98.24 | 102.33 | 108.88 | 103.29 | 98.56 | 101.87 |
The cash conversion cycle of Agilent Technologies Inc has shown some fluctuations over the past few quarters. The cycle measures the time it takes for a company to convert its investments in inventory into cash flows from sales.
From the provided data, we can observe that the cash conversion cycle has ranged from a high of 119.23 days to a low of 98.24 days over the past two years. This indicates that Agilent has been managing its working capital efficiency with some variability. A shorter cycle implies that the company is able to efficiently convert its investments in inventory into cash, while a longer cycle suggests a slower turnover of inventory and/or accounts receivable.
Overall, Agilent's cash conversion cycle has been around 100-120 days in recent quarters, indicating that the company takes an average of around 3 to 4 months to convert its investments in inventory and accounts receivable into cash flows from sales. It is important for the company to continuously monitor and manage its working capital effectively to optimize its cash conversion cycle and improve its overall financial performance.