Comcast Corp (CMCSA)
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 | 0.68 | 0.72 | 0.66 | 0.59 | 0.60 | 0.70 | 0.76 | 0.69 | 0.78 | 0.84 | 0.88 | 0.86 | 0.85 | 1.03 | 0.92 | 0.96 | 0.93 | 0.93 | 0.97 | 0.87 |
| Quick ratio | 0.53 | 0.61 | 0.55 | 0.50 | 0.51 | 0.57 | 0.62 | 0.55 | 0.64 | 0.67 | 0.72 | 0.72 | 0.72 | 0.89 | 0.80 | 0.84 | 0.82 | 0.82 | 0.85 | 0.76 |
| Cash ratio | 0.19 | 0.24 | 0.18 | 0.17 | 0.16 | 0.20 | 0.22 | 0.17 | 0.18 | 0.24 | 0.29 | 0.31 | 0.31 | 0.45 | 0.42 | 0.49 | 0.42 | 0.47 | 0.49 | 0.37 |
The liquidity ratios of Comcast Corp have shown fluctuations over the years based on the provided data. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been below 1 indicating potential liquidity challenges. Specifically, the current ratio hovered around 0.85 to 0.97 from 2020 to 2022. However, in 2023 and 2024, the current ratio declined further, reaching as low as 0.59 by March 31, 2024, highlighting a potential strain on short-term liquidity.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, followed a similar trend to the current ratio. It ranged from 0.50 to 0.89 between 2020 and 2022, signaling a relatively constrained liquidity position. The quick ratio also declined sharply towards the end of the period, dropping to 0.50 by March 31, 2024.
The cash ratio, the most conservative indicator of liquidity, which considers only cash and cash equivalents, exhibited a decreasing trend over the years. The cash ratio decreased from 0.49 in June 2020 to 0.19 by December 31, 2024, reflecting a decreasing ability to cover short-term obligations with cash on hand.
Overall, the trend in liquidity ratios suggests that Comcast Corp faced challenges in maintaining sufficient liquidity to cover its short-term obligations, as evidenced by consistently low current, quick, and cash ratios over the period analyzed. Investors and stakeholders should monitor the company's liquidity position closely to assess its ability to meet financial obligations in the short term.
See also:
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 | -230.96 | -249.02 | -260.09 | -259.25 | -272.18 | -266.32 | -151.98 | -152.65 | -158.53 | -138.70 | -197.77 | -183.61 | -163.69 | -161.54 | -162.81 | -158.45 | -159.00 | -154.30 | -143.64 | -130.63 |
The cash conversion cycle for Comcast Corp has exhibited fluctuations over the periods provided. The cycle measures the time it takes for a company to convert its investment in inventory into cash received from sales. A negative cash conversion cycle indicates that Comcast Corp is able to generate revenue from sales before paying its suppliers, resulting in a more efficient cash management process.
From March 31, 2020, to June 30, 2022, the cash conversion cycle remained consistently negative, indicating efficient cash management and potentially strong working capital management. However, starting from September 30, 2022, the cash conversion cycle showed a significant increase, becoming positive and peaking at -272.18 days by December 31, 2023. This shift indicates that Comcast Corp took longer to convert its investments in inventory into cash during this period.
The subsequent periods showed some improvement, with the cash conversion cycle reducing to -230.96 days by December 31, 2024. Despite this improvement, the cycle remained in the negative territory, reflecting ongoing efficient cash management practices.
Overall, the trend in Comcast Corp's cash conversion cycle suggests variations in its ability to efficiently manage working capital and convert inventory into cash. Monitoring this metric can provide insights into the company's operational efficiency and cash flow management strategies.