CommVault Systems Inc (CVLT)

CommVault Systems Inc's liquidity ratios have shown some fluctuations over the past five years. The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, decreased from 1.63 in 2021 to 1.14 in 2025. This indicates a slight decline in the company's short-term liquidity position.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also exhibited a downward trend, falling from 1.57 in 2021 to 1.00 in 2025. This suggests a potential decrease in the company's ability to meet its immediate liabilities without relying on inventory.

The cash ratio, representing the firm's most liquid assets compared to its current liabilities, decreased from 1.06 in 2021 to 0.54 in 2025. This decline indicates a reduction in the proportion of cash and cash equivalents available to cover current obligations, which could raise concerns about the company's cash solvency.

Overall, the declining trend in CommVault Systems Inc's liquidity ratios over the years may signify a weakening liquidity position, highlighting a potential need to manage its short-term obligations more effectively in the future.

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Additional liquidity measure

CommVault Systems Inc's cash conversion cycle has shown fluctuating trends over the past five years. The cycle represents the time taken by the company to convert its investments in inventory and other resources into cash flows from sales.

In March 2021, the cash conversion cycle stood at 93.66 days, indicating that on average, it took the company around 93.66 days to convert its investments into cash. The following year, there was a slight improvement as the cycle decreased to 90.74 days, showcasing more efficiency in managing cash flows.

However, in March 2023, there was a significant increase in the cash conversion cycle to 201.88 days, suggesting potential challenges in converting investments to cash. This prolonged cycle could lead to liquidity concerns and working capital constraints for the company.

In the subsequent years, there were improvements as the cycle decreased to 96.13 days in March 2024 and further to 91.62 days in March 2025. These improvements indicate better management of inventory, receivables, and payables, leading to a shorter cash conversion cycle and potentially improved cash flows for the company.

Overall, it is crucial for CommVault Systems Inc to focus on optimizing its cash conversion cycle to ensure efficient management of working capital and improved liquidity positions in the future.