Concentrix Corporation (CNXC)

Concentrix Corp.'s liquidity ratios for the past five years indicate the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, shows a generally positive trend from 2019 to 2022, with a slight decrease in 2023. The company's current ratio has been consistently above 1, indicating a healthy liquidity position.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also displays a positive trend over the same period, remaining consistently above 1. This indicates that Concentrix Corp. has sufficient liquid assets to cover its short-term obligations without relying on selling inventory.

Furthermore, the cash ratio, which specifically measures the company's ability to cover current liabilities with its cash and cash equivalents, has also shown improvement over the past five years. While the ratio has fluctuated, there has been an overall positive trend, with the company's cash position relative to its current liabilities strengthening.

Overall, Concentrix Corp.'s liquidity ratios demonstrate a sound ability to meet its short-term financial obligations, as indicated by its current, quick, and cash ratios. However, the slight decrease in the current ratio in 2023 may warrant further attention to ensure the company maintains a robust liquidity position in the future.

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Additional liquidity measure

The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash from sales. Concentrix Corp.'s cash conversion cycle has shown a slight increase over the past five years, with figures ranging from 62.70 days in 2019 to 77.31 days in 2023. This indicates that the company is taking longer to convert its investment in resources into cash from sales. A longer cash conversion cycle can tie up cash and potentially lead to liquidity challenges. It may be important for Concentrix Corp. to assess its inventory management and accounts receivable processes to potentially improve its cash conversion cycle in the future.