Cavco Industries Inc (CVCO)
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 | 3.12 | 3.07 | 2.87 | 2.93 | 2.74 | 2.99 | 2.68 | 2.46 | 2.53 | 2.58 | 2.24 | 2.76 | 2.75 | 2.93 | 2.87 | 3.06 | 3.00 | 3.10 | 2.87 | 2.73 |
| Quick ratio | 1.64 | 1.67 | 1.61 | 1.58 | 1.34 | 1.75 | 1.14 | 0.83 | 1.30 | 1.06 | 0.86 | 1.44 | 1.82 | 2.02 | 1.95 | 2.07 | 1.74 | 1.90 | 1.68 | 1.63 |
| Cash ratio | 1.36 | 1.36 | 1.28 | 1.25 | 0.98 | 1.41 | 1.14 | 0.83 | 0.90 | 1.06 | 0.86 | 1.44 | 1.44 | 1.61 | 1.58 | 1.60 | 1.49 | 1.43 | 1.20 | 1.22 |
Cavco Industries Inc's liquidity ratios have shown fluctuations over the past few quarters. The current ratio has generally been healthy, ranging from 2.24 to 3.12, indicating the company's ability to meet its short-term obligations with its current assets. However, there was a slight dip in the current ratio from the most recent quarter of 3.07 to 2.74 in the quarter ending March 31, 2023. This suggests a decrease in the company's short-term liquidity in that period.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows variability, ranging from 0.83 to 2.07. The quick ratio has generally demonstrated sufficient liquidity to cover short-term obligations, although there have been fluctuations.
The cash ratio, reflecting the company's ability to cover its current liabilities with only cash and cash equivalents, has also shown variability, ranging from 0.83 to 1.61. Although the cash ratio hovers around the level of 1.0 in most quarters, indicating a relatively strong ability to cover short-term obligations with cash, there are periods where it dips slightly below 1.0.
Overall, Cavco Industries Inc's liquidity ratios indicate a generally healthy liquidity position, although some fluctuations suggest the need for careful monitoring of working capital management to ensure the company can meet its short-term 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 | 71.13 | 71.60 | 70.99 | 72.44 | 71.55 | 58.65 | 44.88 | 54.49 | 86.44 | 56.39 | 54.44 | 47.59 | 71.19 | 67.10 | 62.27 | 60.72 | 51.69 | 63.98 | 68.85 | 71.84 |
The cash conversion cycle for Cavco Industries Inc has fluctuated over the past few quarters, indicating varying efficiency in managing its cash flow and working capital.
In the most recent quarter, ending March 31, 2024, the cash conversion cycle was 71.13 days, showing a slight improvement compared to the previous quarter. However, the company's cash conversion cycle tends to be on the higher side, indicating a longer period of time it takes for Cavco Industries Inc to convert its resources into cash.
The cash conversion cycle reached its peak at 86.44 days in the first quarter of 2022, suggesting potential issues with inventory management or accounts receivable collection during that period. The company seems to have made improvements since then, with the cycle decreasing to 44.88 days in the third quarter of 2022, indicating more efficient cash conversion.
Overall, Cavco Industries Inc should continue monitoring and optimizing its cash conversion cycle to improve liquidity and operational efficiency. Keeping the cycle at a manageable level can help the company better manage its working capital and strengthen its financial position.