Maplebear Inc. (CART)

Maplebear Inc.'s liquidity ratios indicate the company's ability to meet its short-term obligations and cover immediate liabilities.

1. Current Ratio: The current ratio measures Maplebear's ability to pay off current liabilities with current assets. The company's current ratio has decreased from 4.85 in 2020 to 3.38 in 2024. Despite the decrease, the current ratio remains above 1, indicating that Maplebear has more than enough current assets to cover its short-term obligations.

2. Quick Ratio: The quick ratio provides a more stringent measure of short-term liquidity by excluding inventory from current assets. Maplebear's quick ratio has also declined over the years, from 3.50 in 2020 to 1.91 in 2024. This downward trend suggests a potential decrease in the company's ability to quickly cover its immediate liabilities using its most liquid assets.

3. Cash Ratio: The cash ratio focuses solely on Maplebear's ability to cover current liabilities with its cash and cash equivalents. Like the quick ratio, the cash ratio has shown a decreasing trend, falling from 3.50 in 2020 to 1.91 in 2024. This could indicate a reduced capacity of Maplebear to settle its short-term obligations using cash on hand.

Overall, Maplebear Inc.'s liquidity position has weakened over the years, as evidenced by the declining trend in its current, quick, and cash ratios. The company may need to closely monitor its liquidity management to ensure it can meet its short-term financial commitments efficiently.

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Additional liquidity measure

The cash conversion cycle of Maplebear Inc. has shown fluctuations over the years. As of December 31, 2020, the company had a cash conversion cycle of 0.00 days, indicating an efficient cash management process. However, by December 31, 2021, the cycle increased slightly to 0.60 days, which could be due to changes in the company's operating or financial strategies.

A significant change occurred by December 31, 2022, where the cash conversion cycle drastically increased to 38.02 days. This indicates that Maplebear Inc. took longer to convert its investments in inventory into cash during that period, which may have strained its liquidity position.

The cycle returned to 0.00 days by December 31, 2023, suggesting a possible improvement in the company's cash management efficiency. Maintaining a low or zero-level cash conversion cycle helps companies optimize working capital and enhance financial health.

Lastly, as of December 31, 2024, the cycle remained at 0.00 days, reflecting a continuation of efficient cash conversion practices. Overall, Maplebear Inc. should monitor its cash conversion cycle closely to sustain healthy liquidity levels and operational efficiency.