CommVault Systems Inc (CVLT)
Liquidity ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.23 | 1.34 | 1.23 | 1.63 | 1.56 |
| Quick ratio | 1.10 | 1.21 | 1.17 | 1.57 | 1.46 |
| Cash ratio | 0.64 | 0.70 | 0.68 | 1.06 | 1.01 |
CommVault Systems Inc's liquidity ratios show a slight decline over the past few years. The current ratio has decreased from 1.56 in 2020 to 1.23 in 2024, indicating a decrease in the company's ability to cover its short-term liabilities with its current assets. Similarly, the quick ratio has also shown a decreasing trend, from 1.46 in 2020 to 1.10 in 2024, which suggests a reduction in the company's ability to meet its immediate obligations with its most liquid assets.
The cash ratio has decreased significantly from 1.01 in 2020 to 0.64 in 2024, showing a decline in the company's ability to pay off its current liabilities solely with its cash and cash equivalents. Overall, the decreasing trend in all three liquidity ratios indicates a potential liquidity challenge for CommVault Systems Inc, warranting further investigation into the company's management of its current assets and liabilities.
Additional liquidity measure
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 96.13 | 201.88 | 90.74 | 93.66 | 103.95 |
CommVault Systems Inc's cash conversion cycle has shown some variability over the past five years. In 2024, the company's cash conversion cycle decreased significantly to 96.13 days compared to the previous year's 201.88 days. This suggests that the company has improved its efficiency in managing its working capital and converting its investments into cash during the latest period.
Looking at a longer-term trend, the cash conversion cycle was relatively stable in 2022 and 2021, hovering around the 90 to 100-day range. In 2020, there was a slight increase to 103.95 days, indicating a temporary decline in efficiency in the utilization of cash resources.
Overall, the downward trend in the cash conversion cycle from 2023 to 2024 is a positive indication of improved working capital management. However, further analysis of the company's receivables, inventory, and payables turnover ratios would provide a more detailed understanding of the components driving these changes in the cash conversion cycle.