CorVel Corp (CRVL)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.56 | 1.55 | 1.65 | 1.70 |
| Quick ratio | 1.33 | 1.26 | 1.13 | 1.06 | 1.07 | 1.02 | 1.07 | 1.12 | 1.21 | 1.22 | 1.36 | 1.48 | 1.36 | 1.30 | 1.34 | 1.33 | 1.26 | 1.15 | 1.27 | 1.31 |
| Cash ratio | 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 | 0.62 | 0.66 | 0.74 | 0.80 |
The liquidity ratios of CorVel Corp over the past several quarters indicate a generally stable liquidity position. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has hovered around 1.5 to 1.6, indicating that CorVel Corp has generally had sufficient current assets to meet its short-term liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, has also remained relatively steady around 1.2 to 1.3. This indicates that the company could comfortably meet its short-term obligations without relying on selling inventory.
The cash ratio, which reflects the proportion of current liabilities that could be covered by cash and cash equivalents, has shown some variability but generally remains above 0.5. This suggests that CorVel Corp has had a reasonable level of cash reserves to cover its short-term liabilities.
Overall, based on the liquidity ratios provided, CorVel Corp appears to have maintained a prudent level of liquidity over the analyzed period, allowing the company to meet its short-term financial obligations effectively.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 55.49 | 53.88 | 49.13 | 47.40 | 46.04 | 49.16 | 49.73 | 46.90 | 52.93 | 46.66 | 45.77 | 46.43 | 45.04 | 42.86 | 53.23 | 48.24 | 42.28 | 28.62 | 32.79 | 28.67 |
The cash conversion cycle of CorVel Corp has shown some fluctuations over the past quarters. On average, the company took approximately 47 days to convert its investments in inventory into cash receipts from customers. This cycle involves the time taken for CorVel Corp to sell inventory, collect receivables from customers, and pay off its payables.
The trend indicates a slight increase in the cash conversion cycle in recent quarters, which could imply that the company is taking longer to convert its inventory into cash. This could be due to various factors such as slowing sales, inefficiencies in inventory management, or extended payment terms with suppliers.
It is notable that the cash conversion cycle reached its peak in the most recent quarter at 55.49 days, which may indicate potential liquidity challenges or operational inefficiencies that require management's attention. On the other hand, the lowest value of 28.62 days in March 2020 suggests that the company was more efficient in managing its working capital during that period.
Overall, the company should continue monitoring and managing its cash conversion cycle effectively to optimize its working capital management, improve liquidity, and enhance overall financial performance.