Box Inc (BOX)

Liquidity ratios

	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Current ratio	1.24	1.20	1.17	1.18	1.13	1.10	1.03	1.17	1.27	1.58	1.78	1.43	1.43	0.90	0.88	0.84	0.79	0.76	0.80	0.83
Quick ratio	1.12	1.06	1.03	1.05	1.01	0.97	0.90	1.04	1.17	1.47	1.67	1.31	1.34	0.79	0.77	0.72	0.70	0.66	0.70	0.73
Cash ratio	0.71	0.77	0.75	0.83	0.64	0.67	0.63	0.85	0.82	1.20	1.44	1.11	0.97	0.55	0.53	0.52	0.34	0.43	0.44	0.52

Box Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been fluctuating over the past few quarters, ranging from 1.03 to 1.78, with the latest reading at 1.24. This suggests that the company has an adequate level of current assets to cover its current liabilities.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown variability, varying between 0.72 and 1.67. The current quick ratio of 1.12 indicates that Box Inc can cover its short-term liabilities with its most liquid assets, though there has been some fluctuation in this ratio.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has been volatile, ranging from 0.34 to 1.44. The current cash ratio of 0.71 suggests that Box Inc may have some challenges meeting its short-term obligations with cash alone.

Overall, Box Inc's liquidity position appears to have improved compared to previous quarters, as indicated by the increasing trend in the current and quick ratios. However, the variability in the cash ratio implies potential fluctuations in the company's ability to pay off immediate obligations solely with cash on hand. Monitoring these ratios over time can provide insights into the company's liquidity management and financial health.

Additional liquidity measure

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Cash conversion cycle	days	98.73	80.01	80.55	70.02	119.67	87.96	85.64	68.03	106.61	66.81	60.08	84.86	133.35	89.57	91.52	81.67	131.42	71.56	76.84	68.65

The cash conversion cycle of Box Inc has shown fluctuations over the past quarters. The cash conversion cycle measures the time it takes for a company to convert its resources (goods or services) into cash flow from customers. A shorter cash conversion cycle indicates better liquidity and efficiency in managing working capital.

From the data provided, we can observe that the cash conversion cycle for Box Inc ranged from a low of 60.08 days to a high of 133.35 days over the past two years. In general, a shorter cash conversion cycle is favorable as it implies that the company is able to generate cash quickly from its operations.

The trend analysis shows some inconsistency in the cash conversion cycle with fluctuations occurring over consecutive quarters. This inconsistency may suggest challenges in managing inventory levels, collecting receivables efficiently, or negotiating favorable payment terms with suppliers.

It is essential for Box Inc to closely monitor and manage its cash conversion cycle to improve operational efficiency, optimize working capital, and enhance overall liquidity. By addressing inefficiencies in inventory management, accounts receivable, and accounts payable processes, the company can work towards reducing the cash conversion cycle and improving its financial performance.