DXC Technology Co (DXC)
Liquidity ratios
| Mar 31, 2025 | Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.22 | 1.34 | 1.25 | 1.21 | 1.17 | 1.11 | 1.13 | 1.14 | 1.18 | 1.13 | 1.14 | 1.09 | 1.09 | 1.12 | 1.08 | 1.02 | 1.01 | 1.10 | 0.96 | 1.29 |
| Quick ratio | 1.08 | 1.18 | 1.09 | 1.05 | 1.02 | 0.97 | 0.96 | 0.96 | 1.02 | 0.90 | 0.98 | 0.94 | 0.95 | 0.98 | 0.96 | 0.88 | 0.87 | 0.97 | 0.84 | 1.17 |
| Cash ratio | 0.41 | 0.45 | 0.31 | 0.32 | 0.28 | 0.34 | 0.30 | 0.31 | 0.36 | 0.34 | 0.39 | 0.35 | 0.39 | 0.43 | 0.40 | 0.33 | 0.36 | 0.47 | 0.36 | 0.66 |
The current ratio of DXC Technology Co has been relatively stable over the past few years, ranging from 0.96 to 1.34. This indicates that the company has a moderate ability to cover its short-term obligations with its current assets.
The quick ratio, on the other hand, has shown more fluctuation but generally remained above 1. This suggests that DXC Technology Co has a reasonable ability to meet its short-term liabilities with its most liquid assets, excluding inventory.
The cash ratio of the company has also been consistent over time, ranging from 0.28 to 0.66. This indicates that DXC Technology Co holds a sufficient amount of cash to cover its immediate liabilities, although it is lower compared to the quick ratio.
In summary, DXC Technology Co's liquidity ratios demonstrate a reasonable ability to meet its short-term obligations with its current and liquid assets, providing a solid foundation for financial stability.
Additional liquidity measure
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 64.43 | 57.62 | 61.62 | 58.95 | 58.61 | 71.69 | 79.82 | 83.00 | 80.16 | 96.74 | 76.42 | 81.63 | 81.08 | 76.06 | 77.57 | 80.49 | 80.72 | 76.22 | 65.83 | 60.31 |
The cash conversion cycle of DXC Technology Co has shown fluctuations over the periods provided. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In general, a longer cash conversion cycle indicates that the company takes more time to turn its investments into cash, which may impact its liquidity and working capital management. However, a shorter cycle may suggest more efficient operations and better cash flow management.
Looking at the data provided, we observe that the cash conversion cycle for DXC Technology Co ranged from a low of 58.61 days on March 31, 2024, to a high of 96.74 days on December 31, 2022. The cycle has shown some volatility throughout the periods, with fluctuations occurring from quarter to quarter.
It is important for the company to closely monitor its cash conversion cycle as it can have implications for the overall financial health and efficiency of its operations. By analyzing the trends in the cycle, DXC Technology Co can identify areas for improvement in inventory management, accounts receivable collection, and accounts payable payment. This will help the company optimize its working capital and ensure better cash flow management.