Concentrix Corporation (CNXC)

Concentrix Corporation's current ratio has shown a generally stable trend over the five-year period from November 30, 2020, to November 30, 2024, ranging between 1.38 and 1.59. This indicates that the company has been able to maintain a relatively healthy level of current assets to cover its current liabilities.

However, the quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has experienced a significant decline over the period. From a relatively high value of 2.44 in November 30, 2020, the quick ratio dropped to 0.12 by November 30, 2024. This decline may raise concerns about the company's ability to meet its short-term obligations without relying on selling inventory.

Similarly, the cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents to cover current liabilities, also mirrors the decreasing trend of the quick ratio. The cash ratio declined from 2.44 in November 30, 2020, to 0.12 by November 30, 2024, indicating a potential reduction in the company's ability to meet its short-term obligations using its readily available cash resources.

Overall, while Concentrix Corporation's current ratio suggests a reasonably stable liquidity position, the decreasing trends in the quick ratio and cash ratio over the years raise some concerns about the company's short-term liquidity management and its ability to cover immediate obligations without relying on inventory or other current assets. It may be advisable for the company to closely monitor and manage its liquidity position to ensure it remains robust in the face of potential short-term cash flow challenges.

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Additional liquidity measure

Concentrix Corporation's cash conversion cycle has remained at 0.00 days for the fiscal years November 30, 2020, 2021, and 2022. This indicates that the company efficiently manages its cash flow, effectively converting its resources into cash without delays during these years. However, there was a significant increase in the cash conversion cycle to 17.79 days for the fiscal year ending November 30, 2023. This could suggest a temporary slowdown in the company's cash conversion efficiency. Nonetheless, the cycle returned to 0.00 days in November 30, 2024, which may indicate a swift recovery to normal operations in terms of managing cash flow. Overall, the company has historically demonstrated effective management of its cash conversion cycle with occasional deviations noted.