Corsair Gaming Inc (CRSR)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.57 | 1.70 | 1.82 | 1.58 | 1.37 |
| Quick ratio | 0.27 | 0.42 | 0.45 | 0.17 | 0.26 |
| Cash ratio | 0.27 | 0.42 | 0.45 | 0.17 | 0.26 |
Corsair Gaming Inc's liquidity ratios have shown fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has demonstrated an improving trend from 1.37 in 2020 to 1.57 in 2024, with a peak at 1.82 in 2022. This suggests that Corsair Gaming Inc's short-term financial position has generally strengthened, although there was a slight decline in 2023.
On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has been more volatile, dropping from 0.26 in 2020 to 0.27 in 2024. This indicates that Corsair Gaming Inc may have faced challenges in meeting its short-term obligations without relying on inventory over the years.
The cash ratio, representing the most conservative liquidity metric by focusing solely on cash and cash equivalents to cover current liabilities, has followed a similar pattern to the quick ratio, declining from 0.26 in 2020 to 0.27 in 2024. This suggests that Corsair Gaming Inc's cash position relative to its short-term liabilities has weakened slightly.
In summary, Corsair Gaming Inc's liquidity position, as indicated by its current, quick, and cash ratios, has seen fluctuations over the years, with improvements in the current ratio but declines in the quick and cash ratios. It is essential for the company to closely monitor these ratios to ensure adequate liquidity to meet its short-term obligations effectively.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 95.97 | 79.72 | 65.22 | 78.32 | 66.69 |
The cash conversion cycle for Corsair Gaming Inc has shown fluctuations over the past five years. Starting from 66.69 days at the end of 2020, the cycle increased to 78.32 days by the end of 2021, before decreasing to 65.22 days at the end of 2022. However, it then rose again to 79.72 days by the end of 2023 and further to 95.97 days at the end of 2024.
A rising cash conversion cycle indicates that Corsair Gaming Inc is taking longer to convert its investments in inventory and other resources into cash from sales. This could be a potential concern as it may lead to cash flow issues and inefficiencies in the company's operations. Management should closely monitor and strategically manage the components of the cash conversion cycle to ensure optimal working capital management and overall financial health.