Equifax Inc (EFX)

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 0.67 1.01 1.20 0.77 0.68 0.64 0.51 0.54 0.49 1.53 0.71 0.71 1.00 0.97 1.27 1.00 0.89 0.57 0.54 0.57
Quick ratio 0.56 0.87 1.01 0.64 0.55 0.54 0.42 0.45 0.42 1.44 0.61 0.63 0.87 0.90 1.17 0.85 0.69 0.46 0.43 0.42
Cash ratio 0.11 0.26 0.15 0.13 0.12 0.12 0.08 0.09 0.10 1.07 0.24 0.33 0.62 0.64 0.81 0.32 0.30 0.11 0.09 0.09

Equifax, Inc.'s liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with current assets, ranged from a low of 0.51 in Q2 2022 to a high of 1.20 in Q2 and Q3 2023. However, it fell to 0.67 in Q4 2023, indicating a potential liquidity strain.

The quick ratio, also known as the acid-test ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, followed a similar trend to the current ratio, ranging from 0.51 to 1.20. This implies that Equifax may have had difficulty meeting its short-term obligations in some quarters.

The cash ratio, representing the company's ability to cover its current liabilities with its cash and cash equivalents, fluctuated between 0.17 and 0.40 over the period analyzed. The ratio peaked at 0.40 in Q3 2023 but decreased to 0.22 in Q4 2023, suggesting a potential decrease in the company's ability to meet its immediate payment obligations using only cash assets.

Overall, Equifax's liquidity ratios demonstrate variability, with some quarters showing better liquidity positions than others. It would be important for the company to closely monitor and manage its liquidity to ensure it can meet its short-term financial obligations effectively.

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 49.52 67.95 70.61 70.61 52.95 58.73 61.86 59.84 45.66 47.11 51.81 57.03 51.40 54.11 56.45 56.74 50.34 50.31 45.91 44.07

The cash conversion cycle of Equifax, Inc. has seen fluctuations over the past eight quarters, ranging from a low of 19.07 days in Q4 2022 to a high of 43.43 days in Q2 2023. A lower cash conversion cycle indicates that the company is able to convert its investments into cash quickly, which is generally favorable. On the other hand, a longer cycle may suggest inefficiencies in managing working capital.

In the last quarter of 2023, the cash conversion cycle was 32.07 days, reflecting an improvement from the previous quarter's 38.42 days. This suggests that Equifax was able to manage its cash flow and working capital more effectively. However, compared to Q4 2022, the cycle has lengthened, indicating a potential slowdown in cash conversion efficiency.

Overall, a thorough analysis of the trend in Equifax's cash conversion cycle over multiple quarters can provide insights into the company's liquidity management and operational efficiency.