Advanced Energy Industries Inc (AEIS)
Liquidity ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 5.10 | 5.32 | 3.80 | 3.15 | 3.02 | 2.73 | 2.80 | 3.23 | 3.14 | 3.01 | 2.93 | 3.18 | 3.31 | 2.91 | 2.71 | 2.84 | 2.71 | 2.47 | 5.83 | 5.12 |
| Quick ratio | 3.95 | 3.13 | 1.50 | 1.20 | 1.94 | 0.95 | 0.96 | 1.44 | 1.51 | 1.47 | 1.39 | 1.58 | 1.65 | 1.32 | 1.11 | 1.15 | 1.08 | 0.95 | 3.76 | 3.15 |
| Cash ratio | 3.11 | 3.13 | 1.50 | 1.20 | 1.17 | 0.95 | 0.96 | 1.44 | 1.48 | 1.42 | 1.35 | 1.57 | 1.63 | 1.28 | 1.12 | 1.17 | 1.09 | 0.96 | 3.73 | 3.16 |
The liquidity ratios of Advanced Energy Industries Inc. indicate the company's ability to meet its short-term obligations. The current ratio has shown a generally increasing trend over the past eight quarters, ranging from 2.73 to 5.32, with the latest ratio at 5.10. This suggests that the company has a comfortable level of current assets to cover its current liabilities.
Similarly, the quick ratio has also shown an increasing trend, ranging from 1.78 to 4.16, with the latest ratio at 4.10. The quick ratio excludes inventory from current assets, providing a more conservative measure of liquidity, and the increasing trend is a positive indication of the company's ability to meet its short-term obligations without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity, includes only cash and cash equivalents in the numerator. The cash ratio has also shown an increasing trend over the past eight quarters, ranging from 1.07 to 3.30, with the latest ratio at 3.26. This indicates that the company has a solid reserve of cash to cover its short-term liabilities.
Overall, the liquidity ratios of Advanced Energy Industries Inc. reveal a strong financial position with improving liquidity levels over the quarters. A higher ratio indicates a better ability to meet short-term obligations, and the increasing trends in these ratios reflect positively on the company's liquidity management.
Additional liquidity measure
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 115.84 | 59.15 | 61.63 | 54.46 | 112.48 | 51.20 | 58.07 | 54.77 | 48.94 | 54.73 | 33.09 | 29.32 | 33.26 | 47.17 | 43.64 | 49.59 | 61.50 | 30.93 | 63.22 | 57.88 |
The cash conversion cycle of Advanced Energy Industries Inc. has shown some fluctuations over the past eight quarters. The cycle ranged from a low of 123.17 days in Q1 2023 to a high of 133.70 days in Q2 2022. Overall, the company has managed to keep the cycle below 130 days in most quarters, indicating efficient management of cash flow and working capital.
The trend seems to have improved in the recent quarters, with a decreasing trend from Q2 2023 to Q4 2023. This suggests that the company is taking measures to streamline its operations and manage its working capital more effectively. A lower cash conversion cycle indicates that the company is able to convert its investments in inventory into sales and cash receipts more quickly, which is a positive sign for overall financial health.
However, it is important for Advanced Energy Industries Inc. to continue monitoring and managing its cash conversion cycle to ensure continued efficiency in the management of its working capital. Overall, the company's performance in this aspect appears stable and improving, reflecting positively on its operational efficiency.