Benchmark Electronics Inc (BHE)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 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
Current ratio 2.32 2.36 2.35 2.36 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
Quick ratio 1.12 1.09 1.07 1.07 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
Cash ratio 0.49 0.51 0.48 0.44 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

Benchmark Electronics Inc's liquidity ratios have shown some fluctuations over the past few years.

1. Current Ratio: The company's current ratio has generally been above 2, indicating that it has a healthy level of current assets to cover its current liabilities. There was a slight decrease in the current ratio from 2.75 in March 2020 to 2.04 in June 2022 before showing some improvement to 2.32 in December 2024.

2. Quick Ratio: Benchmark Electronics Inc's quick ratio has been relatively lower than the current ratio, ranging from 0.86 to 1.12 over the period. The quick ratio, which excludes inventory from current assets, decreased from 1.59 in March 2020 to 0.93 in December 2022 before gradually climbing back up to 1.12 in December 2024.

3. Cash Ratio: The cash ratio, which is the most conservative liquidity measure, shows the company's ability to cover current liabilities using only its cash and cash equivalents. Benchmark Electronics Inc's cash ratio experienced a downward trend from 0.90 in March 2020 to 0.28 in December 2022 but then improved to 0.49 by December 2024.

Overall, while the current ratio indicates sufficient liquidity to meet short-term obligations, the trend in the quick and cash ratios suggests a need for the company to manage its inventory and cash more efficiently to enhance its liquidity position.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 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
Cash conversion cycle days 87.19 84.60 87.32 95.51 102.74 108.03 106.13 105.73 104.31 95.63 89.35 83.92 74.87 67.84 57.24 55.34 63.84 68.55 64.69 57.54

The cash conversion cycle of Benchmark Electronics Inc has shown fluctuations over the years. The company's cash conversion cycle, which measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales and back into cash, has varied between 55.34 days to 108.03 days.

Analyzing the trend, we observe that the cash conversion cycle initially decreased from 57.54 days on March 31, 2020, to 55.34 days on March 31, 2021. This improvement suggests that the company managed its inventory and receivables more efficiently, resulting in a shorter cycle.

However, the cycle then started to increase gradually, reaching its peak at 108.03 days on September 30, 2023. This prolonged cycle indicates potential inefficiencies in managing cash flow, inventory, and receivables.

Subsequently, there was a decrease in the cash conversion cycle, dropping to 87.19 days on December 31, 2024. This improvement could be attributed to the company implementing strategies to streamline its operations and better manage its working capital.

Overall, Benchmark Electronics Inc's cash conversion cycle trend suggests a need for continuous monitoring and optimization of its operating cycles to enhance liquidity and efficiency in converting resources into cash.