Concentrix Corporation (CNXC)
Liquidity ratios
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.56 | 1.38 | 3.54 | 1.74 | 1.76 | 1.55 | 1.67 | 1.59 | 1.57 | 1.59 | 1.64 | 1.66 | 1.60 |
| Quick ratio | 1.21 | 1.05 | 3.34 | 1.54 | 1.57 | 1.36 | 1.49 | 1.44 | 1.42 | 1.44 | 1.45 | 1.37 | 1.42 |
| Cash ratio | 0.13 | 0.14 | 2.02 | 0.15 | 0.18 | 0.13 | 0.17 | 0.16 | 0.14 | 0.19 | 0.17 | 0.15 | 0.13 |
Concentrix Corporation's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has ranged from 1.38 to 3.54. This indicates that the company's current assets have generally been sufficient to cover its short-term liabilities, with a noticeable peak in August 2023.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown variability, ranging from 1.05 to 3.34. This ratio suggests that Concentrix has maintained a moderate level of liquidity to meet its short-term obligations, with the highest level observed in August 2023.
Furthermore, the cash ratio, which evaluates the company's ability to cover current liabilities with its cash and cash equivalents, has fluctuated between 0.13 and 0.19. This indicates that Concentrix has kept a relatively low level of cash reserves compared to its current liabilities, with a slight increase in the cash ratio observed in February 2022.
Overall, Concentrix Corporation's liquidity ratios suggest that the company has managed its short-term liquidity well, with some variability in performance across different quarters. It is essential for the company to maintain a balance between current assets and liabilities to ensure its ability to meet financial obligations in a timely manner.
Additional liquidity measure
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 74.59 | 95.10 | 65.15 | 65.55 | 65.95 | 65.78 | 69.92 | 69.76 | 72.22 | 65.86 |
Concentrix Corporation's cash conversion cycle has exhibited fluctuations over the past ten quarters. The cash conversion cycle is a key indicator of the efficiency with which a company manages its working capital. It reflects the time taken to convert inventory into cash from sales.
Looking at the data, we can observe that the cash conversion cycle peaked at 95.10 days in November 2023, indicating a slower conversion of inventory into cash during that period. However, it improved in the following quarter, dropping to 65.15 days in August 2023, suggesting a more efficient working capital management.
The company maintained a relatively stable cash conversion cycle in the range of 65 to 74 days for most quarters, with minor fluctuations. Overall, Concentrix Corporation has shown a moderate level of efficiency in converting its resources into cash over the past ten quarters.
It is essential for the company to continually monitor and manage its cash conversion cycle to ensure optimal utilization of working capital and maintain liquidity. By analyzing trends in the cash conversion cycle, management can identify areas for improvement and enhance operational efficiency in the future.