PC Connection Inc (CNXN)

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 3.14 3.13 2.95 3.53 3.20 3.06 2.94 3.06 3.07 2.79 2.66 2.57 2.49 2.94 2.66 2.92 2.51 2.49 2.57 2.70
Quick ratio 3.00 2.78 2.56 3.05 2.93 2.60 2.43 2.38 2.55 2.16 2.01 1.90 2.04 2.30 2.11 2.35 2.26 2.06 1.99 2.16
Cash ratio 1.19 1.17 0.99 1.21 0.91 0.85 0.70 0.42 0.40 0.33 0.26 0.18 0.29 0.31 0.35 0.34 0.28 0.32 0.54 0.40

PC Connection Inc's liquidity ratios indicate a strong ability to meet short-term obligations and cover current liabilities.

- The current ratio has shown a generally favorable trend over the years, increasing from 2.70 in March 2020 to 3.14 in December 2024. This suggests that the company has more than enough current assets to cover its current liabilities.

- The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also demonstrates a positive trend, increasing from 2.16 in March 2020 to 3.00 in December 2024. This shows that the company has sufficient liquid assets to meet its short-term obligations without relying on inventory.

- The cash ratio, which indicates the company's ability to cover current liabilities with its most liquid assets, also portrays a strong uptrend, rising from 0.40 in March 2020 to 1.19 in December 2024. This indicates that PC Connection Inc holds a sufficient amount of cash to pay off its immediate debts.

Overall, based on these liquidity ratios, PC Connection Inc appears to have a solid financial position and the ability to meet its short-term obligations comfortably throughout the years.

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 59.85 53.04 55.64 57.19 66.57 59.29 59.08 69.19 75.10 68.56 67.58 71.47 72.88 71.53 66.75 70.69 77.29 60.52 48.89 50.44

The cash conversion cycle of PC Connection Inc, a measure of how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown some fluctuations over the past years.

From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 48.89 days to a high of 77.29 days. The company's efficiency in managing its cash conversion cycle improved initially and then experienced some ups and downs. In the most recent period, by December 31, 2024, the cash conversion cycle decreased to 59.85 days, indicating that the company was managing its working capital more effectively.

It is important to note that a lower cash conversion cycle is generally preferable as it suggests that the company is able to quickly convert its investments in inventory and other resources into cash. However, an excessively low cash conversion cycle may also indicate aggressive revenue recognition practices or poor inventory management.

Overall, monitoring the trend of the cash conversion cycle can provide insight into PC Connection Inc's operational efficiency, liquidity management, and working capital dynamics.