CoreCivic Inc (CXW)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.57 | 1.51 | 1.44 | 1.17 | 1.60 | 1.38 | 1.29 | 1.31 | 1.14 | 1.12 | 1.06 | 1.87 | 1.84 | 1.88 | 1.55 | 1.95 | 2.29 | 1.87 | 2.27 | 1.87 |
| Quick ratio | 0.38 | 0.36 | 0.25 | 0.33 | 0.43 | 0.34 | 0.15 | 0.19 | 0.33 | 0.39 | 0.24 | 1.04 | 0.88 | 1.18 | 0.51 | 0.44 | 0.36 | 0.89 | 1.24 | 0.95 |
| Cash ratio | 0.38 | 0.36 | 0.25 | 0.33 | 0.43 | 0.34 | 0.15 | 0.19 | 0.33 | 0.39 | 0.24 | 1.04 | 0.88 | 1.18 | 0.51 | 0.44 | 0.36 | 0.89 | 1.24 | 0.95 |
The current ratio of CoreCivic Inc has shown fluctuations over the years, ranging from a low of 1.06 in June 2022 to a high of 2.29 in December 2020. This ratio peaked in December 2020 and has since remained above 1, indicating that the company generally has more current assets to cover its current liabilities.
The quick ratio, which excludes inventory from current assets, has also varied significantly, with a low of 0.15 in June 2023 and a high of 1.24 in June 2020. This ratio dipped below 1 multiple times, indicating a potential liquidity concern as the company may struggle to meet its short-term obligations without relying on inventory.
The cash ratio, reflecting the company's ability to cover its current liabilities with cash and cash equivalents, has mirrored the pattern of the quick ratio. It has varied from a low of 0.15 in June 2023 to a high of 1.24 in June 2020. The ratio fell short of 1 in several periods, suggesting a limited ability to settle short-term obligations solely with cash on hand.
Overall, while the current ratio suggests CoreCivic Inc has a relatively comfortable position in terms of overall liquidity, the quick and cash ratios indicate potential concerns about the company's ability to meet immediate obligations without relying on inventory or other assets. Periodic monitoring of these ratios is advisable to ensure the company's liquidity position remains stable.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3.59 | 3.37 | 5.29 | 5.09 | 0.00 | 0.00 | 0.00 | 4.93 | 3.02 | 2.38 | 78.98 | 78.63 | 2.87 | 4.79 | 4.27 |
CoreCivic Inc's cash conversion cycle has shown fluctuations over the years based on the provided data. The cash conversion cycle measures the time a company takes to convert its investments in inventory and other inputs into cash flows from sales. A shorter cash conversion cycle indicates more efficient operations and better management of working capital.
In the period between March 31, 2020, and June 30, 2020, the cash conversion cycle increased from 4.27 days to 4.79 days, indicating a slight decrease in efficiency. However, between September 30, 2020, and December 31, 2020, there was a significant jump to 78.63 days and 78.98 days, respectively, which suggests potential issues with managing working capital and converting assets into cash.
The cycle then improved substantially from June 30, 2021, to September 30, 2021, decreasing to 2.38 days, indicating a positive trend in efficiency. There were further improvements in efficiency observed in the subsequent quarters up to March 31, 2022, where the cycle reached 0.00 days, signifying an extremely efficient management of working capital.
Subsequently, from December 31, 2022, to March 31, 2024, the cash conversion cycle increased to 5.29 days, with fluctuations in between, indicating some challenges in maintaining the efficiency achieved earlier.
Overall, CoreCivic Inc's cash conversion cycle has shown fluctuations, with periods of both efficiency and inefficiency in managing working capital and converting assets into cash. Continuous monitoring and adjustments may be necessary to optimize the cash conversion cycle for improved liquidity and operational performance.