Entegris Inc (ENTG)
Liquidity ratios
| 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 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.08 | 2.92 | 3.58 | 3.35 | 3.85 | 4.31 | 4.59 | 3.14 | 3.06 | 2.64 | 9.86 | 3.68 | 3.47 | 4.12 | 4.45 | 4.67 | 4.08 | 4.63 | 5.00 | 4.78 |
| Quick ratio | 1.57 | 1.58 | 1.80 | 1.67 | 1.82 | 1.59 | 1.60 | 0.94 | 1.48 | 0.92 | 0.64 | 0.95 | 1.98 | 1.54 | 1.54 | 2.06 | 1.92 | 1.96 | 2.24 | 1.66 |
| Cash ratio | 0.63 | 0.73 | 0.77 | 0.76 | 0.93 | 0.92 | 0.93 | 0.94 | 0.78 | 0.92 | 0.64 | 0.95 | 1.06 | 1.54 | 1.54 | 2.06 | 1.92 | 1.96 | 2.24 | 1.66 |
Entegris Inc's current ratio has fluctuated over the past few years, ranging from a high of 9.86 in June 30, 2022, to a low of 2.64 in September 30, 2022. This ratio provides insight into the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates the company can meet its short-term obligations.
The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term liabilities with its most liquid assets. Entegris Inc's quick ratio has varied, with a peak of 2.24 in June 30, 2020, and a low of 0.64 in June 30, 2022. A quick ratio above 1 suggests that the company has an adequate level of liquid assets to cover its short-term liabilities without relying on the sale of inventory.
The cash ratio, which is the most conservative liquidity ratio, shows how well the company can cover its current liabilities with its cash and cash equivalents. Entegris Inc's cash ratio has displayed some volatility, with values ranging from 0.63 in December 31, 2024, to 2.06 in March 31, 2021. A cash ratio above 1 indicates that the company can settle its short-term obligations solely with its cash holdings.
Overall, Entegris Inc's liquidity ratios demonstrate varying levels of liquidity over the periods analyzed, reflecting fluctuations in the company's ability to meet short-term obligations with different compositions of current assets. Investors and stakeholders may monitor these ratios to assess the company's short-term financial health and liquidity management.
Additional liquidity measure
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 148.32 | 154.59 | 148.10 | 139.72 | 132.51 | 137.02 | 143.13 | 117.24 | 183.50 | 137.82 | 115.89 | 115.47 | 156.62 | 94.93 | 95.55 | 91.46 | 87.61 | 99.59 | 100.07 | 89.61 |
The cash conversion cycle of Entegris Inc has exhibited fluctuations over the analyzed periods, ranging from a low of 87.61 days to a high of 183.50 days. This cycle measures the amount of time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
Analyzing the trend, we observe a general upward trajectory starting from the second half of 2021 until the end of 2022, indicating a lengthening of the cash conversion cycle. This increase implies that Entegris is taking longer to convert its investments into cash, which could be a cause for concern if not managed effectively.
However, there is a slight improvement seen in the first half of 2023, where the cash conversion cycle decreased compared to the end of 2022. This downward trend continued into the first half of 2024, indicating a potential refinement in the company's working capital management and operational efficiency.
Overall, the fluctuation in the cash conversion cycle of Entegris Inc suggests varying efficiencies in managing inventory, receivables, and payables. A lower cash conversion cycle indicates a faster and more efficient use of company resources, while a higher cycle could signal potential liquidity constraints or inefficiencies in the operating cycle. Monitoring and managing this metric closely can help the company optimize its cash flow and working capital management strategies.