Benchmark Electronics Inc (BHE)

The current ratio for Benchmark Electronics Inc has shown fluctuation over the years, starting at 2.50 in 2020, decreasing to 2.06 in 2021, and then gradually increasing to 2.32 by the end of 2024. This ratio indicates that the company has a healthy level of current assets to cover its short-term liabilities.

In contrast, the quick ratio has been more volatile, starting at 1.46 in 2020, decreasing to 0.96 in 2021, and then fluctuating between 0.93 and 1.12 over the following years. The quick ratio assesses the company's ability to meet short-term obligations without relying on inventory, and the fluctuation may suggest varying levels of liquidity risk.

Furthermore, the cash ratio, which measures the firm's ability to cover current liabilities with its most liquid assets, started at 0.81 in 2020, dropped to 0.42 in 2021, and then showed some improvement, reaching 0.49 by the end of 2024. While the cash ratio remains relatively low compared to the current and quick ratios, the increasing trend signifies a strengthening liquidity position over time.

Overall, the liquidity ratios of Benchmark Electronics Inc demonstrate a generally healthy liquidity position, with adequate current assets to meet short-term obligations, although the company should closely monitor the quick ratio and continue to improve its cash reserves for increased financial flexibility.

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Additional liquidity measure

Benchmark Electronics Inc's cash conversion cycle has shown fluctuations over the past five years.

As of December 31, 2020, the cash conversion cycle stood at 63.84 days, indicating that the company took approximately 64 days to convert its investments in inventory and accounts receivable into cash.

By the end of December 31, 2021, the cash conversion cycle increased to 74.87 days, showing a longer period needed to convert assets into cash compared to the previous year.

The year 2022 saw a significant jump in the cash conversion cycle to 104.31 days, signifying a substantial increase in the time taken by Benchmark Electronics Inc to convert its investments into cash. It may indicate challenges in managing inventory and accounts receivable efficiently.

Moving to December 31, 2023, the cash conversion cycle remained high at 102.74 days, persisting at elevated levels compared to historical data.

Finally, as of December 31, 2024, the cash conversion cycle decreased to 87.19 days, indicating some improvement in the company's ability to convert assets into cash, although it remained higher than the levels observed in the earlier years.

Overall, Benchmark Electronics Inc has experienced fluctuations in its cash conversion cycle over the past five years, suggesting potential challenges in managing working capital effectively.