Dril-Quip Inc (DRQ)
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 | 6.11 | 6.64 | 8.57 | 9.02 | 8.57 | 8.33 | 8.81 | 10.20 | 7.95 | 9.01 | 7.97 | 8.86 | 10.09 | 8.55 | 7.46 | 8.84 | 9.08 | 9.10 | 9.97 | 11.92 |
| Quick ratio | 4.22 | 4.47 | 6.01 | 6.44 | 6.03 | 6.00 | 6.33 | 7.59 | 5.97 | 6.45 | 5.69 | 6.35 | 7.05 | 5.92 | 5.16 | 6.33 | 6.68 | 7.51 | 8.15 | 9.75 |
| Cash ratio | 1.81 | 1.78 | 2.90 | 3.05 | 3.33 | 3.53 | 3.78 | 4.81 | 3.79 | 4.09 | 3.48 | 3.80 | 4.05 | 3.56 | 3.04 | 3.68 | 4.12 | 4.28 | 4.86 | 5.86 |
Dril-Quip, Inc.'s liquidity ratios demonstrate a strong and consistent liquidity position over the quarters presented.
The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has remained high and stable, ranging from 6.11 to 9.02. This indicates that the company has ample current assets to meet its short-term liabilities comfortably.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects a robust liquidity position for Dril-Quip. Ranging from 4.43 to 7.06, the company shows the ability to cover its short-term obligations without relying on the sale of inventory.
Additionally, the cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, also reveals a healthy liquidity position for Dril-Quip. With values between 2.01 and 5.41, the company has a strong ability to meet its short-term liabilities using only its cash reserves.
Overall, based on these liquidity ratios, Dril-Quip, Inc. appears to maintain a sound liquidity position, with a comfortable cushion of liquid assets to cover its short-term obligations.
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 | 396.95 | 437.15 | 426.83 | 422.89 | 379.19 | 365.95 | 366.06 | 373.26 | 396.50 | 468.67 | 479.00 | 477.42 | 493.53 | 443.50 | 411.64 | 398.19 | 414.76 | 476.21 | 472.11 | 483.44 |
The cash conversion cycle for Dril-Quip, Inc. has shown some fluctuations over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, the cash conversion cycle stood at 396.95 days, which was a decrease from the previous quarter's value of 437.15 days. This reduction suggests that the company was able to manage its working capital more efficiently during this period.
Looking at the trend over the last two years, the cycle has generally been within a range of 365 to 437 days. The highest value was seen in Q3 2023, while the lowest was in Q4 2022. This indicates some variability in how efficiently the company manages its cash flow from operating activities.
Overall, Dril-Quip, Inc. should continue to monitor and improve its cash conversion cycle to ensure that it is utilizing its resources effectively and maintaining healthy liquidity levels. A lower cash conversion cycle is generally considered favorable as it signifies a shorter time period to recover costs and reinvest in new projects or growth opportunities.