Azenta Inc (AZTA)
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 | 5.87 | 6.73 | 7.42 | 7.46 | 6.51 | 10.67 | 13.21 | 4.92 | 2.33 | 2.25 | 2.31 | 2.73 | 2.99 | 3.08 | 2.93 | 2.91 | 2.34 | 2.38 | 3.01 | 2.86 |
| Quick ratio | 4.84 | 5.57 | 6.32 | 6.34 | 5.35 | 7.52 | 11.97 | 4.68 | 1.00 | 1.01 | 1.62 | 2.05 | 2.04 | 2.08 | 2.14 | 2.14 | 1.81 | 1.68 | 1.83 | 1.69 |
| Cash ratio | 4.18 | 4.83 | 5.52 | 5.55 | 4.54 | 6.81 | 11.20 | 4.45 | 0.63 | 0.66 | 0.87 | 1.21 | 1.17 | 1.19 | 1.25 | 1.23 | 1.22 | 1.07 | 0.90 | 0.77 |
Azenta Inc's liquidity ratios have shown fluctuations over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has ranged from a high of 13.21 in Q3 2022 to a low of 4.92 in Q2 2022, with a recent value of 5.87 in Q1 2024. This indicates that the company has generally maintained a strong liquidity position, with current assets consistently exceeding current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has followed a similar trend, ranging from 12.79 in Q3 2022 to 4.80 in Q2 2022, and currently standing at 5.31 in Q1 2024. The quick ratio also suggests that Azenta Inc has maintained a strong ability to cover its short-term liabilities with liquid assets.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has shown similar patterns, with values ranging from 12.02 in Q3 2022 to 4.58 in Q2 2022, and currently at 4.65 in Q1 2024. This indicates that the company has a sufficient level of cash to cover its immediate obligations, although there has been some volatility in this ratio over the quarters.
Overall, Azenta Inc's liquidity ratios indicate a generally strong ability to meet its short-term obligations with liquid assets, providing a solid foundation for financial stability and operational flexibility.
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 | 129.58 | 127.97 | 144.85 | 157.42 | 173.41 | 136.51 | 156.51 | 106.22 | 70.15 | 56.35 | 112.57 | 117.69 | 115.55 | 96.53 | 76.14 | 74.40 | 70.81 | 73.35 | 134.10 | 132.84 |
The cash conversion cycle of Azenta Inc has fluctuated significantly over the quarters, indicating potential inefficiencies in managing cash flow and working capital.
In Q1 2024 and Q4 2023, the cash conversion cycle improved slightly to 170.11 days and 169.82 days, respectively, suggesting a shorter period to convert investments in inventory and accounts receivable into cash.
During Q3 2023 and Q2 2023, the cash conversion cycle increased to 195.19 days and 211.91 days, indicating a longer period to convert resources into cash, potentially due to slower collections from customers or inefficient inventory management.
The cash conversion cycle spiked in Q1 2023 to 223.78 days, reflecting a considerable delay in converting assets into cash, highlighting potential liquidity challenges or operational inefficiencies during that period.
Comparatively, Q4 2022 and Q3 2022 saw a significant improvement in the cash conversion cycle, with values of 164.67 days and 316.86 days, respectively. However, Q3 2022 exhibited an unusually long cash conversion cycle, potentially indicating issues with managing working capital effectively.
Notably, in Q2 2022, the cash conversion cycle skyrocketed to 1,401.59 days, signifying a prolonged period to convert investments into cash, which could be attributed to factors such as excessive inventory levels, delayed receivables collection, or inefficient payment practices.
Overall, the fluctuating cash conversion cycle of Azenta Inc over the quarters suggests the need for closer monitoring and management of working capital components to improve cash flow efficiency and operational performance.