CorVel Corp (CRVL)

Liquidity ratios

	Mar 31, 2025	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
Current ratio	16.36	1.77	1.71	1.66	1.64	1.56	1.51	1.43	1.45	1.38	1.42	1.44	1.55	1.58	1.67	1.75	1.66	1.63	1.63	1.62
Quick ratio	16.36	1.24	1.13	1.14	1.10	1.06	0.96	0.91	0.91	0.86	0.91	0.97	1.05	1.09	1.23	1.35	1.26	1.21	1.20	1.17
Cash ratio	10.16	0.75	0.65	0.66	0.57	0.57	0.49	0.46	0.42	0.42	0.43	0.52	0.57	0.68	0.81	0.91	0.86	0.81	0.71	0.68

CorVel Corp's liquidity ratios show a mixed trend over the period analyzed.

1. Current Ratio: The company's current ratio, which measures its ability to meet short-term obligations with current assets, has generally been above 1, indicating a healthy position. However, the ratio has shown a slight decline from 1.75 as of June 30, 2021, to 1.56 as of December 31, 2023, before recovering to 1.77 by December 31, 2024. The ratio stood exceptionally high at 16.36 as of March 31, 2025, which may indicate a significant spike in current assets and warrants further investigation.

2. Quick Ratio: CorVel Corp's quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown a decreasing trend overall. The ratio decreased from 1.35 as of June 30, 2021, to 1.24 by December 31, 2024. However, the ratio spiked significantly to 16.36 as of March 31, 2025, which may raise questions about the composition of the company's assets.

3. Cash Ratio: The cash ratio, which assesses the company's ability to cover current liabilities with cash and cash equivalents, shows a declining trend. The ratio decreased from 0.91 as of June 30, 2021, to 0.75 by December 31, 2024. The ratio also showed a significant spike to 10.16 as of March 31, 2025, indicating a potential increase in cash reserves.

Overall, while CorVel Corp generally maintains a healthy liquidity position based on the current ratio being above 1, the decreasing trend in quick and cash ratios, alongside the spikes in these ratios in the last period, suggests potential fluctuations in the composition of the company's current assets that may warrant further analysis and monitoring.

Additional liquidity measure

		Mar 31, 2025	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
Cash conversion cycle	days	42.44	36.76	44.08	36.83	35.16	34.79	32.78	32.60	31.35	33.05	33.46	30.52	36.24	31.84	32.09	33.27	32.24	31.77	38.30	32.67

The cash conversion cycle of CorVel Corp, a measure of the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has fluctuated over the periods provided in the data.

From June 30, 2020, to March 31, 2021, the company's cash conversion cycle remained relatively stable between 31.77 days and 38.30 days. However, there was an increase to 36.24 days on March 31, 2022, followed by a decrease to 30.52 days on June 30, 2022. The cycle then fluctuated between 30.52 days and 36.83 days until September 30, 2024.

A significant increase was noted on September 30, 2024, where the cash conversion cycle extended to 44.08 days before decreasing to 36.76 days on December 31, 2024. This was followed by a further increase to 42.44 days on March 31, 2025.

The fluctuation in the cash conversion cycle may suggest variations in CorVel Corp's efficiency in managing its working capital components, such as inventory levels, accounts receivable, and accounts payable. A longer cash conversion cycle may indicate that the company is taking longer to convert its investments into cash or facing challenges in collecting payments from customers. Conversely, a shorter cash conversion cycle may suggest improved liquidity and efficient management of working capital.

It would be advisable for CorVel Corp to closely monitor and manage its working capital components to optimize its cash conversion cycle, maintain liquidity, and improve overall financial performance.