Digi International Inc (DGII)

Liquidity ratios

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 Dec 31, 2019
Current ratio 1.73 2.00 2.05 2.35 1.93 1.88 2.02 1.88 1.72 1.79 1.87 1.98 4.18 4.29 4.12 2.48 2.78 3.31 3.54 3.01
Quick ratio 1.09 1.21 1.18 1.32 1.02 0.90 0.97 0.94 0.88 1.09 1.21 1.22 3.33 3.28 3.01 1.51 1.85 2.16 2.57 2.12
Cash ratio 0.31 0.34 0.29 0.45 0.37 0.33 0.38 0.34 0.36 0.44 0.46 0.59 2.59 2.56 2.24 0.73 0.88 1.09 1.09 0.80

The liquidity ratios of Digi International Inc indicate the ability of the company to meet its short-term obligations. The current ratio has shown some fluctuation over time but generally appears healthy, ranging from 1.72 to 2.35. This suggests that the company has sufficient current assets to cover its current liabilities, with the ratio consistently above 1. A higher current ratio is generally considered favorable, providing a buffer for unexpected expenses or a downturn in business.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also varied but remains relatively stable between 0.88 and 1.32. This indicates that the company can meet its short-term obligations without relying on selling inventory, which is positive as it shows a strong position to handle immediate financial needs.

The cash ratio has also shown some variability but generally remains at acceptable levels, fluctuating between 0.29 and 0.59. This ratio indicates the ability of the company to cover its current liabilities using its cash and cash equivalents alone, without relying on other current assets. A higher cash ratio is typically preferred as it provides a stronger indication of immediate liquidity.

Overall, while there have been fluctuations, the liquidity ratios of Digi International Inc suggest that the company is in a solid position to meet its short-term financial obligations and maintain its operations without facing significant liquidity challenges.

Additional liquidity measure

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 Dec 31, 2019
Cash conversion cycle days 121.98 132.28 138.03 148.66 154.41 160.76 162.66 148.34 134.15 138.54 142.35 128.72 106.58 123.27 140.96 152.97 140.81 139.61 179.90 182.16

The cash conversion cycle of Digi International Inc has shown fluctuations over the past few quarters. It gives insights into how long it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.

The trend of the cash conversion cycle shows an increasing trend from the third quarter of 2020 to the second quarter of 2022, indicating that the company was taking longer to convert its resources into cash during this period. However, from the fourth quarter of 2022 to the second quarter of 2024, there has been a decreasing trend in the cash conversion cycle, showing that the company has been able to better manage its working capital and convert its resources into cash more efficiently.

It is worth noting that the cash conversion cycle reached its lowest point in the third quarter of 2021 and has since shown some volatility. This could indicate potential fluctuations in the company's working capital management efficiency or changes in its business operations.

Overall, a lower cash conversion cycle is generally favorable as it indicates that the company is efficiently managing its working capital and converting its resources into cash quickly. Monitoring the cash conversion cycle over time can provide valuable insights into the company's operational efficiency and liquidity management.