Corsair Gaming Inc (CRSR)

The current ratio for Corsair Gaming Inc has been fluctuating over the past few years, ranging from 1.37 to 1.82. This indicates the company's ability to meet its short-term obligations using its current assets. The ratio has generally been above 1, which suggests that the company has had an acceptable level of liquidity to cover its short-term liabilities.

On the other hand, the quick ratio, which excludes inventory from current assets, has been lower than the current ratio, ranging from 0.08 to 0.51. This implies that Corsair Gaming Inc may have been relying more on inventory to meet its short-term obligations, compared to other more liquid assets. A quick ratio below 1 may indicate potential difficulties in meeting immediate obligations without relying on selling inventory.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has followed a similar trend to the quick ratio, ranging from 0.08 to 0.51. This indicates the company's ability to cover its short-term liabilities purely from its cash reserves. A cash ratio below 1 means that Corsair Gaming Inc may not have enough cash on hand to cover its short-term obligations.

Overall, while the current ratio suggests a reasonable level of liquidity for Corsair Gaming Inc, the lower quick and cash ratios signal potential weaknesses in the company's ability to meet immediate obligations without relying on inventory or non-cash assets. Monitoring and improving these ratios may be important for strengthening the company's overall liquidity position.

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Additional liquidity measure

The cash conversion cycle is a critical metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Analyzing the data provided for Corsair Gaming Inc, we observe fluctuations in the cash conversion cycle over the period from March 31, 2020, to December 31, 2024.

The cash conversion cycle for Corsair Gaming Inc ranged from a low of 53.48 days on June 30, 2020, to a high of 107.16 days on September 30, 2024. This indicates variability in the efficiency of the company's working capital management over the years.

A decreasing trend was observed from September 2020 to March 2021, where the cash conversion cycle decreased from 70.34 days to 62.23 days. This suggests the company was able to improve its efficiency in converting inventory to cash during this period.

Subsequently, there was an increase in the cash conversion cycle from June 2021 to September 2024, reaching a peak of 107.16 days on September 30, 2024. This prolonged cycle may highlight challenges in managing inventory levels, collection of receivables, or the payment of payables efficiently during this time frame.

Overall, it is important for Corsair Gaming Inc to closely monitor and manage its cash conversion cycle to ensure optimal utilization of its working capital resources and improve its overall financial performance.