Cable One Inc (CABO)

Based on the provided data for Cable One Inc, let's analyze the liquidity ratios over the years:

1. Current Ratio:
- The current ratio declined from 3.04 in 2020 to 1.86 in 2021, indicating a potential decrease in the company's short-term liquidity position.
- In 2022, the current ratio decreased further to 1.42, suggesting a continued weakening of the company's ability to meet its short-term obligations.
- By the end of 2023, the current ratio improved to 1.69, indicating a slight recovery in liquidity.
- However, in 2024, the current ratio fell to 1.31, signaling a potential strain on the company's short-term liquidity position.

2. Quick Ratio:
- The quick ratio was significantly high at 6.24 in 2020, indicating a strong ability to cover short-term obligations without relying on inventory.
- However, the quick ratio decreased sharply to 1.44 in 2021, which may raise concerns about the company's ability to meet immediate payment obligations.
- In the following years, the quick ratio continued to decline, reaching 0.99 in 2022 and further decreasing to 0.93 in 2023.
- The quick ratio slightly improved to 1.12 by the end of 2024, but it remained relatively low compared to previous years.

3. Cash Ratio:
- The cash ratio followed a similar trend to the quick ratio, starting high at 6.24 in 2020 but decreasing to 1.44 in 2021.
- In 2022 and 2023, the cash ratio continued to decline, reaching 0.99 and 0.93, respectively.
- By the end of 2024, the cash ratio improved slightly to 1.12, indicating an increase in the proportion of cash available to cover immediate obligations.

In conclusion, Cable One Inc experienced a decline in its liquidity ratios over the analyzed period, potentially indicating challenges in meeting short-term obligations. The company's current ratio, quick ratio, and cash ratio all showed a decreasing trend, suggesting a need for management to monitor and potentially improve the company's liquidity position.

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Additional liquidity measure

The cash conversion cycle of Cable One Inc has shown fluctuations over the years based on the provided data. In the year ending December 31, 2020, the company had a relatively efficient cash conversion cycle of 11.55 days, indicating that it was able to quickly convert its investments in inventory into cash.

However, there was an increase in the cash conversion cycle for the year ending December 31, 2021, reaching 17.23 days. This suggests that Cable One Inc took longer to convert its inventory and accounts receivable into cash during that period.

Interestingly, the cash conversion cycle dropped to 0.00 days for the years ending December 31, 2022 and 2024, indicating that the company was able to manage its cash conversion exceptionally well, possibly through efficient inventory management and collection of accounts receivable.

On the other hand, there was a significant increase in the cash conversion cycle for the year ending December 31, 2023, reaching 44.24 days. This spike may indicate challenges in managing inventory levels and receivables efficiently, leading to a longer cash conversion cycle.

Overall, Cable One Inc should continue to monitor and optimize its cash conversion cycle to ensure efficient management of working capital and cash flow in the future.