Agilysys Inc (AGYS)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Current ratio 2.11 2.01 2.11 2.02 1.97 1.96 2.20 2.10 1.91 2.33 2.57 2.36 2.18 2.26 2.52 2.09 1.35 1.35 1.38 1.37
Quick ratio 1.95 1.82 1.86 1.80 1.72 1.70 1.89 1.88 1.71 2.18 2.41 2.22 2.04 2.11 2.31 1.87 1.19 1.15 1.18 1.17
Cash ratio 1.62 1.27 1.48 1.45 1.44 1.30 1.55 1.51 1.36 1.79 2.04 1.82 1.62 1.59 1.87 1.33 0.67 0.67 0.74 0.69

Agilysys Inc's liquidity ratios have shown fluctuating trends over the past few quarters.

The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has generally remained above 2.0. This indicates that Agilysys Inc has a comfortable level of current assets to cover its current liabilities. However, there was a slight dip in the ratio in the most recent quarter compared to the previous quarter.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a similar trend, remaining above 1.5. This suggests that the company has a strong ability to meet its short-term obligations without relying on selling its inventory. Like the current ratio, the quick ratio decreased slightly in the most recent quarter compared to the prior quarter.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has ranged between 1.20 and 1.70. This indicates that Agilysys Inc holds sufficient cash reserves to cover its current liabilities, although the ratio has also seen some variability in recent quarters.

Overall, Agilysys Inc's liquidity position appears to be strong based on these ratios, with the company having sufficient liquidity to meet its short-term obligations. However, the slight decreases in the current and quick ratios in the most recent quarter may warrant further monitoring to ensure the company's liquidity remains robust.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Cash conversion cycle days 37.22 74.89 41.88 41.15 41.77 61.78 40.56 46.50 49.77 49.83 32.35 43.52 56.81 72.57 48.65 70.27 65.75 44.34 32.16 55.29

The cash conversion cycle of Agilysys Inc has varied over the past few quarters, indicating fluctuations in the company's ability to convert its resources efficiently into cash. For the most recent quarter ending March 31, 2024, the cash conversion cycle stood at 37.22 days, showing an improvement compared to the previous quarter at 74.89 days.

The trend in the cash conversion cycle can provide insights into Agilysys Inc's operational efficiency and working capital management. A lower cash conversion cycle signifies that the company is able to collect payments from customers, sell inventory, and pay off suppliers in a shorter timeframe, which is generally indicative of effective operational performance.

It is essential for Agilysys Inc to continually monitor and manage its cash conversion cycle to ensure optimal utilization of resources and maintain liquidity. Analyzing the components of the cash conversion cycle, including the days sales outstanding (DSO), days inventory outstanding (DIO), and days payables outstanding (DPO), can help identify areas for improvement and drive strategic decision-making within the organization.