CommVault Systems Inc (CVLT)

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 1.23 1.31 1.34 1.32 1.34 1.30 1.30 1.31 1.23 1.28 1.42 1.56 1.63 1.69 1.78 1.65 1.56 1.57 1.95 1.91
Quick ratio 1.10 1.17 1.19 1.17 1.21 1.25 1.24 1.24 1.17 1.22 1.36 1.49 1.57 1.61 1.69 1.57 1.46 1.49 1.88 1.84
Cash ratio 0.64 0.66 0.70 0.71 0.70 0.70 0.75 0.73 0.68 0.64 0.87 1.03 1.06 1.08 1.25 1.10 1.01 1.01 1.48 1.41

CommVault Systems Inc's liquidity ratios have been relatively stable over the past several quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from 1.23 to 1.42 in the last year. This indicates that the company has generally been able to meet its short-term obligations with its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has fluctuated between 1.10 and 1.69 over the same period. While this ratio is generally lower than the current ratio, it still suggests that CommVault Systems Inc has had a sufficient level of liquid assets to cover its short-term liabilities.

The cash ratio, which is the most conservative liquidity measure as it only includes cash and cash equivalents, has varied from 0.64 to 1.48 in the past year. This ratio indicates the company's ability to pay off its current liabilities without relying on inventory or receivables.

Overall, CommVault Systems Inc's liquidity ratios demonstrate a generally healthy liquidity position, as reflected in the current, quick, and cash ratios being consistently above 1 in most periods. However, it is important for the company to continue monitoring and managing its liquidity position to ensure it can meet its short-term obligations efficiently.

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 96.68 122.06 112.47 104.98 120.81 99.69 78.09 83.98 91.85 102.84 81.84 78.93 94.69 99.40 73.77 79.95 103.95 106.18 61.77 69.07

CommVault Systems Inc's cash conversion cycle shows fluctuations over the past few quarters. The cash conversion cycle represents the average number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates better liquidity and efficiency in managing working capital.

In the most recent quarter ending March 31, 2024, CommVault Systems Inc's cash conversion cycle was 96.68 days, which is an improvement compared to the previous two quarters. However, it is still higher than the levels seen in the first half of 2022.

The company experienced a significant increase in the cash conversion cycle in the fourth quarter of 2023, reaching 122.06 days, which was the highest level observed in the provided data. This indicates a potential inefficiency in managing working capital during that period.

Looking at historical data, there have been fluctuations in the cash conversion cycle, with some quarters showing shorter cycles compared to others. The company's management may need to focus on optimizing inventory levels, managing accounts receivable and accounts payable effectively, and streamlining operating processes to improve the cash conversion cycle and enhance overall liquidity and efficiency.