CoreCivic Inc (CXW)
Liquidity ratios
| 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 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.18 | 0.53 | 0.58 | 1.03 |
| Quick ratio | 1.46 | 1.23 | 1.11 | 1.13 | 1.02 | 1.01 | 0.82 | 1.76 | 1.71 | 1.77 | 1.41 | 1.11 | 1.22 | 1.72 | 2.07 | 1.72 | 1.01 | 0.45 | 0.49 | 0.85 |
| Cash ratio | 0.41 | 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 | 0.25 | 0.07 | 0.08 | 0.06 |
CoreCivic Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been fluctuating over the quarters, with a general increasing trend from Q1 2022 to Q4 2023. It reached its highest point in Q4 2023 at 1.60, suggesting the company's current assets are 1.60 times its current liabilities.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, follows a similar trend as the current ratio. It also increased from Q1 2022 to Q4 2023, indicating that CoreCivic Inc has a stronger ability to cover its short-term liabilities with assets that can be quickly converted into cash.
The cash ratio, which is the most stringent measure of liquidity, shows a declining trend from Q1 2022 to Q4 2023. This ratio reached its lowest point in Q4 2023 at 0.50, indicating that CoreCivic Inc may have limited cash reserves relative to its current liabilities.
Overall, the increasing current and quick ratios suggest an improvement in CoreCivic Inc's liquidity position over the quarters, although the declining cash ratio raises a cautionary note about the company's ability to cover its short-term obligations with cash alone. It is essential for the company to continue monitoring and managing its liquidity position to ensure financial stability and meet its ongoing obligations effectively.
Additional liquidity measure
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -41.40 | 72.00 | 69.93 | 79.44 | -40.71 | 58.01 | 53.94 | 51.48 | -41.74 | 57.58 | 65.48 | 380.62 | 285.80 | 64.02 | 69.64 | 71.93 | -21.80 | 84.10 | 92.14 | 98.15 |
The cash conversion cycle of CoreCivic Inc has been relatively stable over the past eight quarters, ranging from a low of 50.53 days to a high of 61.80 days. This metric indicates the average number of days it takes for the company to convert its resources (raw materials, labor, and overhead) into cash receipts from sales to customers.
A lower cash conversion cycle suggests that the company is efficient in managing its cash flow, as it takes less time to recover the cash invested in the production and sales process. Conversely, a higher cash conversion cycle could indicate inefficiencies in operations or delays in receiving payments from customers.
Overall, CoreCivic Inc's cash conversion cycle has shown consistency over the quarters, with minor fluctuations. Further analysis and comparison with industry peers may provide additional insights into the company's cash management efficiency.