3D Systems Corporation (DDD)
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 | 3.47 | 4.27 | 5.36 | 5.10 | 5.26 | 5.50 | 5.68 | 5.52 | 6.57 | 5.80 | 4.21 | 2.33 | 2.43 | 2.03 | 2.09 | 1.91 | 2.21 | 2.29 | 2.29 | 2.36 |
| Quick ratio | 2.20 | 2.98 | 3.99 | 3.83 | 4.06 | 4.36 | 4.66 | 4.59 | 5.68 | 5.03 | 3.52 | 1.39 | 1.49 | 1.11 | 1.08 | 0.95 | 1.33 | 1.54 | 1.39 | 1.46 |
| Cash ratio | 1.45 | 2.25 | 3.23 | 3.19 | 3.44 | 3.75 | 4.00 | 3.93 | 4.96 | 4.44 | 2.99 | 0.83 | 0.86 | 0.46 | 0.47 | 0.37 | 0.68 | 0.87 | 0.75 | 0.83 |
The liquidity ratios of 3D Systems Corporation have shown fluctuating trends over the historical period analyzed. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally been above 1, indicating a healthy liquidity position. However, there have been variations in the current ratio with the highest being 6.57 in Mar 31, 2022, and the lowest being 1.91 in Jun 30, 2020.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Similar to the current ratio, the quick ratio has mostly remained above 1, suggesting the company's ability to cover its short-term liabilities without relying on inventory. The quick ratio has fluctuated over time, with the highest value of 5.68 in Jun 30, 2022, and the lowest value of 0.95 in Mar 31, 2020.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has shown a similar pattern of fluctuation. The company has generally maintained a healthy cash position, with the cash ratio consistently above 1, indicating a strong ability to cover its current liabilities with cash on hand. The cash ratio has ranged from a high of 4.96 in Mar 31, 2022, to a low of 0.37 in Jun 30, 2020.
Overall, the liquidity ratios of 3D Systems Corporation demonstrate a reasonably stable liquidity position over the historical period, with fluctuations in the ratios reflecting changes in the company's current asset composition and liabilities.
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 | 123.05 | 120.54 | 147.47 | 131.23 | 125.27 | 115.62 | 110.63 | 94.02 | 91.80 | 80.94 | 77.41 | 83.45 | 101.54 | 121.13 | 115.24 | 107.71 | 98.54 | 98.37 | 101.14 | 104.63 |
The cash conversion cycle of 3D Systems Corporation has shown some fluctuations over the past few quarters. The company's cash conversion cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales, stood at 123.05 days as of March 31, 2024. This indicates that on average, it takes 123.05 days for the company to complete the cycle from purchasing raw materials to receiving cash from customers.
The trend over the past few quarters shows some variability, with the cash conversion cycle ranging from a low of 77.41 days in September 2021 to a high of 147.47 days in September 2023. This fluctuation suggests some changes in the company's inventory management, accounts receivable collection, and accounts payable policies during this period.
Overall, a lower cash conversion cycle is generally preferable as it signifies faster conversion of investments into cash, freeing up funds for other uses or investments. It is important for 3D Systems Corporation to monitor and manage its cash conversion cycle effectively to ensure optimal liquidity and financial performance. The company may consider implementing strategies to streamline its processes and improve efficiency in managing its working capital components to reduce the cash conversion cycle and enhance its financial position.