CACI International Inc (CACI)

The analysis of CACI International Inc’s liquidity position from September 2020 through June 2025 reveals a generally stable but gradually evolving profile across key liquidity ratios — the current ratio, quick ratio, and cash ratio.

Current Ratio Analysis:
The current ratio indicates the company’s ability to meet short-term obligations with its short-term assets. Throughout the observed period, the current ratio fluctuated between a low of 1.17 (September 2022) and a high of 1.75 (September 2024). Initially, the ratio started at 1.46 in September 2020 and experienced some cyclical variation but remained above 1.2 in recent periods, suggesting a consistent capacity to cover current liabilities. A notable increase occurred in September 2024, signaling an improved liquidity buffer, possibly due to increased current assets or reduced current liabilities.

Quick Ratio Analysis:
The quick ratio, which excludes inventory and is a more stringent measure of liquidity, shows similar stability with some fluctuations. It ranged from a low of 0.97 (September 2022) to a high of 1.48 (September 2024). The ratios have generally hovered just above 1 in most periods, indicating that the company’s most liquid assets (excluding inventories) are sufficient to cover current liabilities, with the notable peak in September 2024 signifying a particularly strong position at that time.

Cash Ratio Analysis:
The cash ratio, reflecting the most conservative liquidity measure (cash and cash equivalents relative to current liabilities), remained relatively low throughout the period, fluctuating between 0.09 (June 2025) and 0.41 (September 2024). The ratio consistently remained below 0.2 in most periods, indicating that a substantial part of current liabilities could not be covered with cash alone. The spike to 0.41 in September 2024 suggests a significant increase in cash holdings at that time, potentially reflecting strategic liquidity management or cash inflows. Subsequently, the ratio declined again, which might indicate increased utilization of cash for operations, investments, or debt repayment.

Overall Perspective:
The liquidity ratios depict a company maintaining a prudent liquidity position, with ratios consistently above the critical threshold of 1 for the current and quick ratios for most of the analyzed period. The upward trend in the current and quick ratios around September 2024 suggests improved short-term liquidity health, possibly due to enhanced cash holdings or better management of current assets and liabilities. Despite fluctuations, the ratios indicate that CACI has generally managed sufficient liquidity to meet its short-term obligations, with a cautious reliance on cash reserves that have shown notable variability.

In summary, CACI’s liquidity profile demonstrates stability with periods of improvement, particularly evident in late 2024, reflecting positive liquidity management and resilience in short-term financial health.

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Additional liquidity measure

The analysis of CACI International Inc's cash conversion cycle (CCC) over the provided period indicates a generally declining trend from September 30, 2020, through September 30, 2023, followed by some fluctuations thereafter.

Initially, the CCC decreased from approximately 51.31 days in September 2020 to a low of around 38.44 days in September 2022. This reduction signifies an improvement in the company's liquidity management, reflecting shorter durations for converting investments into cash. The trend during this period suggests enhanced operational efficiency, possibly due to tighter receivables collection, improved inventory management, or more favorable payables practices.

Between September 2022 and March 2023, the cycle increased slightly from 38.44 days to approximately 43.32 days, indicating a temporary slowdown in the efficiency of cash conversion, which could have been driven by changes in receivables, inventory, or payables management strategies.

Subsequently, the CCC experienced minor fluctuations, reaching about 40.34 days in September 2023 and marginally increasing again to approximately 40.19 days at the end of 2023. These moderate changes suggest relative stabilization in the company's working capital management practices during this period.

Looking forward, projections beyond 2023 show an upward trend, with the cycle extending to 45.11 days in March 2025 and further to 47.74 days by June 2025. This lengthening indicates potential challenges or shifts in operational efficiency, possibly due to slower receivables collection, inventory accumulation, or extended payment terms to suppliers.

Overall, the company's cash conversion cycle demonstrates an initial period of improvement followed by stabilization and subsequent gradual deterioration. The initial declines reflect effective working capital management, while the later increases could signal evolving operational or strategic factors impacting liquidity and cash flow timing.

This comprehensive trend analysis underscores the importance of continuously monitoring the components influencing CACI's CCC to maintain optimal liquidity and operational efficiency.