CACI International Inc (CACI)

Looking at the liquidity ratios of CACI International Inc over the past five years, we can observe the following trends:

1. Current Ratio: This ratio measures the company's ability to cover its short-term obligations with its current assets. CACI International Inc's current ratio has been fluctuating over the past five years, ranging from 1.18 to 1.50. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable. The current ratio for the most recent year, Jun 30, 2024, stands at 1.27, suggesting that the company has sufficient current assets to meet its short-term obligations.

2. Quick Ratio: Also known as the acid-test ratio, the quick ratio provides a more stringent measure of liquidity by excluding inventory from current assets. CACI International Inc's quick ratio has been relatively stable over the years, varying between 1.01 and 1.23. A quick ratio above 1 indicates that the company can meet its short-term liabilities without relying on selling inventory. The quick ratio for Jun 30, 2024, is 1.08, indicating the company's ability to cover its short-term obligations with its most liquid assets.

3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, focusing solely on the company's ability to cover its current liabilities with cash and cash equivalents. CACI International Inc's cash ratio has remained relatively consistent around 0.10 to 0.14 over the past five years. A cash ratio below 1 suggests that the company does not hold enough cash to cover its short-term obligations. The cash ratio for Jun 30, 2024, is 0.12, indicating that the company may need to rely on other current assets to meet its immediate cash needs.

In summary, CACI International Inc has maintained stable liquidity ratios over the past five years, with the current and quick ratios reflecting a generally healthy liquidity position. However, the cash ratio indicates that the company may have limited cash reserves relative to its current liabilities, which could pose a liquidity risk in certain scenarios. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to meet its short-term financial obligations.

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Additional liquidity measure

The cash conversion cycle measures how long it takes a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle typically indicates a more efficient use of resources and improved liquidity management.

For CACI International Inc, we observe a declining trend in the cash conversion cycle over the past five years, which is a positive signal. In particular, the cash conversion cycle decreased from 52.48 days in June 2020 to 40.36 days in June 2024, suggesting that the company has been able to speed up the conversion of resources into cash.

This improvement may indicate effective inventory management, faster collection of receivables, or potentially extended payment terms with suppliers. Overall, a decreasing trend in the cash conversion cycle suggests that CACI International Inc has been managing its working capital more efficiently and potentially enhancing its overall financial performance.