Axcelis Technologies Inc (ACLS)
Liquidity ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 5.41 | 4.45 | 4.42 | 4.00 | 3.79 | 3.89 | 3.82 | 3.49 | 3.54 | 3.73 | 4.44 | 4.40 | 4.12 | 4.16 | 4.83 | 5.72 | 5.58 | 6.28 | 4.85 | 5.20 |
| Quick ratio | 2.75 | 2.30 | 2.25 | 1.92 | 1.78 | 1.77 | 1.82 | 1.66 | 1.74 | 1.65 | 1.88 | 2.01 | 1.96 | 1.98 | 2.06 | 2.47 | 2.41 | 3.06 | 2.19 | 2.32 |
| Cash ratio | 2.75 | 2.30 | 2.25 | 1.92 | 1.78 | 1.77 | 1.82 | 1.66 | 1.74 | 1.65 | 1.88 | 2.01 | 1.96 | 1.98 | 2.06 | 2.47 | 2.41 | 3.06 | 2.19 | 2.32 |
Axcelis Technologies Inc's liquidity ratios have shown fluctuations over the years. The current ratio, which measures the firm's ability to cover short-term liabilities with current assets, has been generally above 4 but has been declining recently, from a high of 6.28 on September 30, 2020, to 3.79 on December 31, 2023, before slightly improving to 5.41 on December 31, 2024.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a similar declining trend from 3.06 on September 30, 2020, to 1.78 on December 31, 2023, before recovering to 2.75 on December 31, 2024.
The cash ratio, which is the most conservative liquidity measure as it looks at the ability to cover current liabilities with only cash and cash equivalents, has followed a comparable pattern to the quick ratio, declining from 3.06 on September 30, 2020, to 1.78 on December 31, 2023, and then improving to 2.75 on December 31, 2024.
Overall, Axcelis Technologies Inc's liquidity ratios have shown some volatility, indicating potential challenges in meeting short-term obligations, especially in certain periods. Management should continue to monitor and manage the liquidity position of the company to ensure it remains financially stable and able to meet its obligations as they come due.
Additional liquidity measure
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 182.90 | 177.17 | 167.89 | 182.13 | 174.98 | 182.79 | 186.55 | 172.53 | 170.74 | 173.00 | 171.97 | 179.94 | 189.29 | 218.34 | 241.17 | 228.24 | 213.04 | 215.71 | 220.64 | 227.53 |
The cash conversion cycle of Axcelis Technologies Inc has shown fluctuations over the period under review. Starting at 227.53 days on March 31, 2020, the cycle decreased to 171.97 days by June 30, 2022, before slightly increasing to 182.90 days on December 31, 2024.
The cash conversion cycle measures how long it takes a company to convert its investment in inventory back into cash. A lower value indicates that the company is more efficient in managing its working capital.
The decreasing trend in the cash conversion cycle from 2020 to mid-2022 suggests that Axcelis Technologies was becoming more efficient in managing its inventory, receivables, and payables. However, the slight increase towards the end of 2024 might indicate some challenges in working capital management.
Analyzing the components of the cash conversion cycle, Axcelis Technologies might have improved its inventory turnover, reduced the time taken to collect receivables, or extended the time to pay its payables in the earlier periods. However, the recent uptick could signify potential issues that require further investigation.
Overall, understanding the cash conversion cycle dynamics can provide insights into a company's operational efficiency and liquidity management, which are crucial aspects of financial health and performance.