The Cooper Companies, Inc. Common Stock (COO)

The liquidity ratios of The Cooper Companies, Inc. Common Stock over the past five years exhibit notable variations in its ability to meet short-term obligations with its current assets. The current ratio shows an increasing trend from 1.27 in 2020 to 1.91 in 2024, indicating a positive liquidity position. However, it is important to note that in 2022, the current ratio dropped significantly to 1.20, which may indicate potential liquidity concerns during that period.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows fluctuations over the years. While the quick ratio improved from 0.55 in 2020 to 0.81 in 2024, it remains below 1 in each year, suggesting potential difficulties in meeting immediate obligations without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity, remained relatively stable around 0.11 to 0.13 over the five-year period. This indicates that the company holds a limited amount of highly liquid assets relative to its current liabilities, which could potentially pose challenges in covering short-term obligations solely with cash on hand.

Overall, The Cooper Companies, Inc. Common Stock has shown improvements in its current and quick ratios in recent years, but the ratios remain below ideal levels for optimal liquidity management. Monitoring these ratios closely and potentially implementing strategies to enhance cash reserves could help strengthen the company's liquidity position in the future.

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Additional liquidity measure

The cash conversion cycle of The Cooper Companies, Inc. Common Stock has shown some fluctuations over the past five years. The cycle indicates the average number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In 2024, the cash conversion cycle increased to 132.40 days compared to the previous year, reflecting a potential delay in the company's ability to convert its resources into cash. This increase may indicate issues with inventory management or collection of receivables.

In 2023, the cash conversion cycle improved to 122.96 days, showing a positive trend in the company's efficiency in managing its working capital. This could imply better inventory management and quicker conversion of receivables into cash.

In 2022, the cash conversion cycle decreased significantly to 108.19 days, indicating enhanced efficiency in the utilization of resources and faster conversion of sales into cash. This improvement suggests better management of working capital and stronger liquidity position.

In 2021, the cash conversion cycle increased to 123.79 days, which could suggest potential challenges in managing inventory levels or collecting receivables efficiently. This increase may have impacted the company's cash flow generation during that period.

In 2020, the cash conversion cycle was 128.65 days, reflecting a longer time taken to convert resources into cash flows. This could indicate operational inefficiencies or difficulties in managing working capital during that year.

Overall, analyzing the cash conversion cycle over the past five years provides insights into The Cooper Companies, Inc. Common Stock's working capital management, efficiency in operations, and potential areas for improvement to enhance cash flow and liquidity.