Avnet Inc (AVT)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019
Current ratio 2.32 2.33 2.34 2.54 2.53 2.63 2.54 2.04 2.09 2.02 2.15 2.40 2.34 2.29 2.28 2.39 2.78 2.42 2.38 2.23
Quick ratio 1.05 1.01 1.00 1.16 1.19 0.05 1.26 0.02 1.05 0.05 0.05 0.10 0.07 0.11 0.13 0.17 0.21 0.15 0.18 0.21
Cash ratio 0.07 0.05 0.06 0.06 0.07 0.05 0.08 0.02 0.04 0.05 0.05 0.10 0.07 0.11 0.13 0.17 0.21 0.15 0.18 0.21

Avnet Inc's liquidity ratios show a generally stable trend over the past several quarters. The current ratio has been consistently above 2, indicating that the company has more than enough current assets to cover its current liabilities. This suggests that Avnet Inc has a strong ability to meet its short-term obligations.

However, the quick ratio shows some fluctuations, with a significant drop in the March 31, 2023, and September 30, 2022, periods. The quick ratio measures the ability to meet short-term obligations with its most liquid assets, excluding inventory. Avnet Inc's quick ratio has been volatile, dipping below 1 in some quarters, indicating potential difficulty in meeting immediate short-term obligations without relying on inventory.

The cash ratio has also shown volatility, with fluctuations throughout the quarters. The cash ratio measures the company's ability to cover current liabilities with cash and cash equivalents, providing a more stringent measure of liquidity. Avnet Inc's cash ratio has generally been low, indicating a potential weakness in its ability to cover short-term obligations with its available cash resources.

In summary, while Avnet Inc's current ratio reflects strong liquidity in terms of overall current assets to current liabilities, the quick ratio and cash ratio show some weaknesses in terms of ability to swiftly cover short-term obligations without relying on inventory or with cash only. Avnet Inc may need to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019
Cash conversion cycle days 104.39 104.28 109.76 102.10 98.21 34.87 95.78 19.36 78.47 12.78 16.30 16.54 17.63 16.88 20.30 21.85 22.92 23.12 24.84 21.91

The cash conversion cycle of Avnet Inc has shown fluctuations over the past few quarters. The company's cash conversion cycle measures the time it takes for Avnet to convert its investments in inventory and other resources into cash flows from sales.

Based on the data provided, we can see that the cash conversion cycle has ranged from a low of 12.78 days to a high of 109.76 days over the past few quarters. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert its resources into cash quickly. Conversely, a higher cash conversion cycle suggests that Avnet may be facing challenges in managing its working capital effectively.

It is worth noting the significant increase in the cash conversion cycle from the March 31, 2023, quarter to the December 31, 2023, quarter, which peaked at 109.76 days. This indicates a potential increase in the time taken for Avnet to convert its investments into cash during that period.

Overall, it is important for Avnet to closely monitor and manage its cash conversion cycle to ensure optimal efficiency in working capital management and maximize cash flows from its operations.