Digi International Inc (DGII)
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 | 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 | 4.33 | 5.08 | 4.26 |
| Quick ratio | 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 | 3.36 | 3.74 | 3.06 |
| Cash ratio | 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 | 2.09 | 2.47 | 1.75 |
The liquidity ratios of Digi International, Inc. provide insight into the company's ability to meet its short-term obligations. The current ratio has shown a generally positive trend over the past eight quarters, starting at 1.72 in Q3 2022 and increasing to 2.35 in Q1 2024. This indicates that the company has improved its ability to cover its current liabilities with current assets.
The quick ratio, which excludes inventory from current assets, also displays an upward trend over the same period. It increased from 0.92 in Q4 2022 to 1.39 in Q1 2024, showing that Digi International has a greater ability to meet its short-term obligations with its most liquid assets.
The cash ratio, which provides the most conservative measure of liquidity, has also been trending positively. It rose from 0.40 in Q4 2022 to 0.52 in Q1 2024. This demonstrates that the company has more cash on hand to cover its current liabilities without relying on inventory or receivables.
Overall, the improving trend in all three liquidity ratios suggests that Digi International, Inc. has been effectively managing its short-term liquidity position over the past eight quarters. This can provide reassurance to stakeholders, as a strong liquidity position indicates a company's ability to weather financial challenges and capitalize on opportunities as they arise.
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 | 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 | 131.18 | 135.22 | 155.88 |
The cash conversion cycle of Digi International, Inc. has been fluctuating over the past few quarters. In Q1 2024, the company's cash conversion cycle was 150.67 days, showing an improvement compared to Q4 2023 (156.69 days) and Q3 2023 (163.50 days). However, it was slightly higher than in Q1 2023 (151.16 days).
Looking back further, the cash conversion cycle in Q4 2022 was lower at 136.91 days, which indicates that the company's efficiency in converting its resources into cash was better at that time.
Overall, the trend in the cash conversion cycle suggests some variability in the company's ability to manage its cash flows effectively. It is important for Digi International to focus on optimizing its working capital management to maintain a healthy cash conversion cycle and improve its overall financial performance.