Comcast Corp (CMCSA)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.68 | 0.60 | 0.78 | 0.85 | 0.93 |
| Quick ratio | 0.53 | 0.51 | 0.64 | 0.72 | 0.82 |
| Cash ratio | 0.19 | 0.16 | 0.18 | 0.31 | 0.42 |
Based on the provided data, Comcast Corp's liquidity ratios have been showing a declining trend over the years.
1. Current ratio: The current ratio measures the company's ability to cover its short-term obligations with its current assets. Comcast's current ratio has decreased from 0.93 in 2020 to 0.68 in 2024. This indicates that the company may have difficulty meeting its short-term liabilities with its current assets.
2. Quick ratio: The quick ratio, also known as the acid-test ratio, is a more stringent measure of liquidity as it excludes inventory from current assets. Comcast's quick ratio has also declined from 0.82 in 2020 to 0.53 in 2024. This suggests that the company's ability to cover its immediate liabilities without relying on inventory has weakened over the years.
3. Cash ratio: The cash ratio is the strictest measure of liquidity, focusing only on the most liquid assets, which are cash and cash equivalents. Comcast's cash ratio has decreased from 0.42 in 2020 to 0.19 in 2024. This indicates a decreasing ability to cover its short-term obligations solely with its cash and cash equivalents.
Overall, the decreasing trend in all three liquidity ratios signifies a potential vulnerability in Comcast Corp's short-term financial health and its ability to meet its obligations as they become due. Management should closely monitor these ratios and take necessary actions to improve liquidity position.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -231.30 | -272.16 | -158.53 | -163.67 | -159.00 |
The cash conversion cycle of Comcast Corp has shown a fluctuating trend over the years based on the provided data. As of December 31, 2020, the company had a negative cash conversion cycle of -159.00 days, indicating that it was able to convert its investments in raw materials into cash quickly.
By December 31, 2021, the cash conversion cycle slightly increased to -163.67 days, which suggests a slight slowdown in the company's ability to convert its inventory and accounts receivable into cash.
In the following year, as of December 31, 2022, the cash conversion cycle improved to -158.53 days, indicating a more efficient conversion of working capital into cash compared to the previous year.
However, a significant negative change was observed by December 31, 2023, with a cash conversion cycle of -272.16 days. This could be a signal that the company's management of working capital, particularly in terms of inventory turnover and accounts receivable collection, may have faced challenges during that period.
By December 31, 2024, although there was an improvement compared to the previous year, with a cash conversion cycle of -231.30 days, it still remained higher than the levels observed in earlier years. This suggests that Comcast Corp may have experienced continued difficulties in efficiently managing its working capital to generate cash flow.
Overall, the trend in Comcast Corp's cash conversion cycle indicates some fluctuations in the company's efficiency in managing its working capital and converting it into cash over the analyzed period.