Comcast Corp (CMCSA)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 0.60 | 0.78 | 0.85 | 0.93 | 0.84 |
| Quick ratio | 0.51 | 0.64 | 0.72 | 0.82 | 0.61 |
| Cash ratio | 0.16 | 0.18 | 0.31 | 0.42 | 0.24 |
Comcast Corp's liquidity ratios indicate its ability to meet short-term obligations and manage its current liabilities. The current ratio, which measures the company's ability to pay off short-term obligations with its current assets, demonstrates a declining trend from 0.93 in 2020 to 0.60 in 2023. This suggests that the company may be facing challenges in maintaining sufficient current assets to cover its current liabilities.
Similarly, the quick ratio, which considers only the most liquid current assets, also shows a declining trend from 0.93 in 2020 to 0.60 in 2023, indicating potential difficulties in meeting short-term obligations without relying on inventory.
The cash ratio, a more stringent measure of liquidity that only considers cash and cash equivalents, also displays a decreasing trend from 0.53 in 2020 to 0.25 in 2023, suggesting that Comcast may have reduced ability to pay off its current liabilities using its most liquid assets.
Overall, Comcast's liquidity ratios indicate a potential deterioration in its ability to cover short-term obligations with its current assets, which may require further analysis and management attention to ensure the company's financial stability.
See also:
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -272.16 | -158.53 | -163.67 | -159.00 | -78.76 |
The cash conversion cycle for Comcast Corp has shown some fluctuations over the past five years. In 2023, the cash conversion cycle increased to 41.47 days from 38.09 days in 2022, indicating a potential slowdown in the company's ability to convert its investments in inventory and accounts receivable into cash. This could be attributed to changes in the company's inventory management or collection processes.
Comparing to 2021, the cash conversion cycle increased slightly from 37.66 days, indicating a relatively stable performance in converting its assets into cash. In 2020, there was a slight increase in the conversion cycle to 40.41 days, which may be due to changes in the company's operational or financial activities.
In 2019, the cash conversion cycle was 37.83 days, showing consistency with 2021 and suggesting that the company had been effectively managing its working capital to generate cash. Overall, the trend of the cash conversion cycle indicates variations in the company's efficiency in managing its working capital and converting it into cash over the past five years.