CACI International Inc (CACI)

The liquidity ratios of CACI International Inc over the period from June 30, 2021, to June 30, 2025, reflect a generally stable liquidity position with some minor fluctuations.

The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, shows a downward trend from 1.50 in 2021 to 1.18 in 2022. Subsequently, it exhibits a modest recovery, increasing to 1.22 in 2023 and further rising to 1.27 in 2024. By 2025, the current ratio reaches 1.47, indicating a strengthening of short-term liquidity over this period. Overall, the current ratio remains above 1 across all years, implying that CACI maintains sufficient current assets relative to current liabilities, though the decline in 2022 suggests a temporary weakening in liquidity that is gradually being reversed.

The quick ratio, which excludes inventory from current assets to provide a more stringent test of liquidity, follows a similar pattern. It declines slightly from 1.09 in 2021 to 1.01 in 2022, indicating a minor reduction in liquid assets available to cover current liabilities. In subsequent years, the quick ratio shows incremental improvements, increasing to 1.02 in 2023, 1.08 in 2024, and reaching 1.25 in 2025. These figures suggest that CACI enhances its readily available assets relative to short-term obligations over time, maintaining a comfortable liquidity buffer.

The cash ratio, which measures the most liquid assets—cash and cash equivalents—relative to current liabilities, remains relatively low throughout the period. It is steady at 0.10 in 2021, increases slightly to 0.11 in 2022, and 2023, then stays at 0.12 in 2024 before decreasing again to 0.09 in 2025. This indicates that while the company has a relatively small portion of its current liabilities covered solely by cash, the low ratio is consistent with industry norms for certain sectors and suggests reliance on other liquid assets beyond cash for short-term financial flexibility.

In summary, CACI International Inc demonstrates a generally stable liquidity profile, with ratios that hover above critical thresholds indicative of adequate short-term financial health. The trend from 2021 to 2025 shows an overall improvement, particularly in the current and quick ratios, reflecting enhanced liquidity management despite some fluctuations. The consistently low cash ratio points to an emphasis on liquid assets other than cash, typical for firms with strong receivables or marketable securities.

---

Additional liquidity measure

The analysis of CACI International Inc's cash conversion cycle (CCC) over the period from June 30, 2021, to June 30, 2025, reveals several notable trends and fluctuations. Initially, the CCC was 48.56 days as of June 30, 2021, indicating that the company's operations took nearly fifty days to convert investments in inventory and receivables into cash flows, after accounting for payables.

Between June 30, 2021, and June 30, 2022, the CCC decreased to 41.44 days, reflecting an improvement in operational efficiency. This reduction suggests that the company became more effective at managing its inventory, receivables, or payables during this period, thereby reducing the time it takes to convert its investments into cash.

However, from June 30, 2022, to June 30, 2023, the CCC experienced a slight increase to 44.71 days. This uptick indicates a temporary decline in operational efficiency or changes in working capital management strategies, which resulted in a longer duration to convert resources into cash.

The most significant improvement occurred by June 30, 2024, when the CCC decreased further to 37.50 days. This reduction signifies a notable enhancement in the company's working capital management, implying more streamlined operations, faster collection of receivables, or more favorable payables terms.

Unfortunately, the CCC increased again in the subsequent year, reaching 47.74 days as of June 30, 2025. This rise suggests a reversal of recent efficiencies, potentially driven by increased receivables, longer inventory turnover periods, or extended payment terms to suppliers, which temporarily delayed cash conversion.

Overall, the company's cash conversion cycle exhibits variability over the analyzed period, with improvements in 2022 and 2024 and setbacks in 2023 and 2025. The fluctuations reflect changes in operational practices, liquidity management, and possibly broader market or industry conditions influencing working capital cycles. The current cycle of approximately 47.74 days indicates a moderate duration for converting operational investments into cash, emphasizing ongoing management considerations to optimize cash flow efficiency.