Benchmark Electronics Inc (BHE)

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	2.29	2.44	2.38	2.38	2.21	2.01	2.04	2.12	2.06	2.13	2.18	2.40	2.50	2.64	2.60	2.75	2.60	2.72	2.58	2.65
Quick ratio	1.02	1.06	1.01	0.95	0.93	0.86	0.90	0.92	0.96	1.00	1.13	1.34	1.46	1.42	1.41	1.59	1.47	1.58	1.56	1.63
Cash ratio	0.39	0.37	0.34	0.30	0.28	0.29	0.33	0.36	0.42	0.48	0.64	0.79	0.81	0.73	0.76	0.90	0.76	0.79	0.81	0.81

Benchmark Electronics Inc. has shown a consistent current ratio above 2 in the most recent quarters, indicating a healthy ability to cover its short-term obligations using its current assets. The upward trend in the current ratio over the past year suggests an improvement in the company's liquidity position.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also remained above 1, although slightly lower than the current ratio. This indicates that the company has a reasonable ability to meet its short-term liabilities without relying on inventory sales.

The cash ratio, which measures the company's ability to cover its current liabilities using only its cash and cash equivalents, has generally been above 0.5 in the past year. While the cash ratio has fluctuated slightly, it indicates that Benchmark Electronics Inc. has a sufficient level of cash to meet its short-term obligations.

Overall, the liquidity ratios for Benchmark Electronics Inc. suggest that the company is in a strong position to meet its short-term financial obligations and has improved its liquidity position over the past year.

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	102.74	108.03	106.13	105.73	104.31	95.63	89.35	83.92	74.87	67.84	57.24	55.34	63.84	68.55	64.69	57.54	54.49	56.05	44.19	49.17

The cash conversion cycle for Benchmark Electronics Inc. has shown a fluctuating trend over the past eight quarters. In Q1 2022, the company had a relatively low cash conversion cycle of 83.92 days, which then increased gradually to reach its peak in Q3 2023 at 108.03 days.

During the last two quarters of 2022, there was a notable improvement in efficiency as the cash conversion cycle decreased from 95.63 days in Q3 to 89.35 days in Q4. However, this positive trend was reversed in 2023, with the cycle lengthening in each consecutive quarter.

On average, the cash conversion cycle for Benchmark Electronics Inc. during this period was around 101.96 days. A shorter cash conversion cycle indicates that the company is able to convert its inventory into cash quickly, which is generally considered a positive sign of efficient operations. Conversely, a longer cycle may suggest issues with managing working capital effectively or slow accounts receivable collection.

Overall, Benchmark Electronics Inc. should focus on optimizing its cash conversion cycle to improve operational efficiency and financial performance. It may consider implementing strategies to streamline inventory management, optimize accounts receivable collection, and negotiate favorable payment terms with suppliers to shorten the cycle and enhance cash flow.