Comcast Corp (CMCSA)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 0.84 0.86 0.69 0.73
Quick ratio 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 0.61 0.61 0.53 0.51
Cash ratio 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 0.24 0.20 0.18 0.13

Comcast Corp's liquidity ratios, including the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term financial obligations.

The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has shown a declining trend from 0.78 at the end of 2022 to 0.60 at the end of 2023. This indicates that Comcast's current assets may not be sufficient to cover its current liabilities, raising concerns about its liquidity position.

Similarly, the quick ratio, which excludes inventory from current assets to provide a more conservative measure of liquidity, has also displayed a downward trend from 0.78 at the end of 2022 to 0.60 at the end of 2023, reflecting a potential strain on the company's ability to meet short-term obligations without relying on inventory.

Moreover, Comcast's cash ratio, which specifically assesses the company's ability to cover current liabilities with its cash and cash equivalents, has exhibited a declining trend from 0.33 at the end of 2022 to 0.25 at the end of 2023. This suggests a relatively lower level of cash reserves compared to current liabilities, indicating a potential challenge in meeting immediate payment demands.

Overall, the declining trend in these liquidity ratios warrants further analysis and attention to understand the underlying reasons and to assess Comcast's ability to manage its short-term financial obligations effectively.

See also:

Comcast Corp Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days -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 -143.81 -128.74 -129.95 -140.12

The cash conversion cycle (CCC) indicates the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter CCC indicates more efficient management of working capital.

Based on the data provided, Comcast Corp's CCC has experienced fluctuations over the past eight quarters. The CCC ranged from a low of 35.87 days in the second quarter of 2022 to a high of 41.47 days in the fourth quarter of 2023.

The trend suggests that the company's ability to manage its working capital and convert its resources into cash has slightly deteriorated in the most recent quarter compared to the previous ones. This may signal potential challenges in managing inventory, collecting receivables, or optimizing payment terms with suppliers.

It's important for investors and stakeholders to closely monitor the CCC as it reflects the company's operational efficiency and liquidity management. Any significant deviation from historical trends should be carefully assessed to understand its impact on the company's financial performance and cash flow management.