3D Systems Corporation (DDD)

The liquidity ratios of 3D Systems Corporation demonstrate the company's ability to meet its short-term financial obligations.

1. Current Ratio:
- The current ratio has fluctuated over the past five years, ranging from 2.03 in 2020 to 5.80 in 2021.
- The current ratio was relatively high in 2021 and 2022, indicating that 3D Systems had ample current assets to cover its current liabilities.
- However, the current ratio decreased in 2023 to 4.27, although it still remains at a healthy level, indicating a strong ability to meet short-term obligations.

2. Quick Ratio:
- The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows fluctuations over the years.
- The quick ratio ranged from 1.11 in 2020 to 5.03 in 2021, indicating high liquidity in 2021.
- The quick ratio decreased in 2023 to 2.98, suggesting that 3D Systems may have slightly less liquidity to cover immediate obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio, which measures the company's ability to cover short-term liabilities using only cash and cash equivalents, also fluctuated over the years.
- The cash ratio ranged from 0.46 in 2020 to 4.44 in 2021, indicating a significant increase in the ability to cover short-term obligations with cash in 2021.
- The cash ratio decreased in 2023 to 2.25, but still indicates a strong ability to cover short-term liabilities with available cash.

Overall, the liquidity ratios demonstrate that 3D Systems Corporation has maintained a strong liquidity position over the years, enabling the company to meet its short-term obligations effectively. The slight decreases in ratios in 2023 compared to 2021 and 2022 could be monitored for any potential impact on the company's liquidity position.

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Additional liquidity measure

The cash conversion cycle of 3D Systems Corporation has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 119.68 days, indicating a longer time period for the company to convert its investments in inventory into cash from sales. This represents an increase compared to the previous year, where the cycle was 114.76 days.

In 2021, the cash conversion cycle was notably shorter at 61.32 days, suggesting improved efficiency in managing inventory and collecting receivables. However, this performance was not sustained in 2022 and 2023.

Comparing the current cycle to the situation in 2020 and 2019, the company's cash conversion cycle was similar, hovering around 114-98 days. This stability indicates that 3D Systems Corporation may not have made significant improvements in its working capital management over this time period.

Overall, the company should focus on reducing its cash conversion cycle to improve its liquidity position and optimize its working capital management for better efficiency and profitability.