Calix Inc (CALX)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Current ratio 4.46 4.50 4.28 3.96 3.19 4.22 3.69 3.58 3.31 2.96 3.51 3.11 3.19 3.20 2.98 2.83 2.64 2.43 1.35 1.21
Quick ratio 2.27 2.21 1.96 1.64 1.17 1.80 1.63 1.60 1.46 1.30 1.71 1.51 1.59 1.61 1.50 1.37 1.32 1.12 0.43 0.36
Cash ratio 2.27 2.21 1.96 1.64 1.17 1.80 1.63 1.60 1.46 1.30 1.71 1.51 1.59 1.61 1.50 1.37 1.32 1.12 0.43 0.36

The liquidity ratios of Calix Inc have shown a positive trend over the years, indicating the company's ability to meet its short-term obligations.

1. Current Ratio:
- The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, has been steadily increasing from 1.21 in March 2020 to 4.46 in December 2024.
- The current ratio has consistently remained above 1, indicating that Calix Inc has more current assets than current liabilities throughout the period, providing a healthy cushion to cover its short-term obligations.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets.
- Calix Inc's quick ratio has also shown a positive trend, increasing from 0.36 in March 2020 to 2.27 in December 2024.
- The quick ratio has consistently improved and remained above 1, indicating that the company has an increasing ability to meet its short-term obligations without relying on selling inventory.

3. Cash Ratio:
- The cash ratio, the most conservative liquidity ratio, measures the company's ability to cover its short-term obligations using only cash and cash equivalents.
- Calix Inc's cash ratio has followed a similar upward trend, increasing from 0.36 in March 2020 to 2.27 in December 2024.
- The cash ratio has consistently improved and remained at healthy levels, indicating the company's increasing ability to cover its short-term obligations solely with cash.

Overall, Calix Inc's liquidity ratios show a strong and improving liquidity position, with the company having an increasing ability to meet its short-term obligations comfortably over the years.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash conversion cycle days 99.21 84.25 88.45 87.04 93.25 111.89 115.71 123.87 125.91 129.43 98.88 112.69 100.50 86.10 90.70 89.65 69.57 58.72 53.86 46.16

The Cash Conversion Cycle (CCC) is a key metric that reveals how efficiently a company manages its working capital in the production and sales process. Calix Inc's CCC has shown fluctuations over the past years, indicating changes in its operational efficiency.

From March 31, 2020, to June 30, 2020, the CCC increased from 46.16 days to 53.86 days, reflecting a longer period between paying suppliers and receiving cash from customers. This trend continued, reaching a peak of 129.43 days on September 30, 2022, suggesting potential issues in managing inventory, accounts payable, and accounts receivable.

However, from December 31, 2022, to June 30, 2024, the CCC gradually improved, showing better working capital efficiency. The CCC decreased to 84.25 days on September 30, 2024, indicating that Calix Inc has effectively reduced the time it takes to convert investments in inventory into cash receipts from sales.

Overall, the analysis of Calix Inc's CCC highlights the company's ability to optimize its working capital management over time, with fluctuations reflecting changes in operational processes and efficiency improvements. Further monitoring of the CCC can provide insights into the company's liquidity and financial health.