EPAM Systems Inc (EPAM)
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 | 4.79 | 4.77 | 4.92 | 4.15 | 3.69 | 3.47 | 3.45 | 3.32 | 2.97 | 3.31 | 3.90 | 4.32 | 4.11 | 4.22 | 4.37 | 3.87 | 3.81 | 4.38 | 4.72 | 4.41 |
| Quick ratio | 3.25 | 3.15 | 3.16 | 2.65 | 2.33 | 2.13 | 1.98 | 1.87 | 1.89 | 2.00 | 2.45 | 2.96 | 2.97 | 2.94 | 2.88 | 2.35 | 2.42 | 4.29 | 4.61 | 4.30 |
| Cash ratio | 3.25 | 3.15 | 3.16 | 2.65 | 2.33 | 2.13 | 1.98 | 1.87 | 1.89 | 2.00 | 2.45 | 2.96 | 2.97 | 2.94 | 2.88 | 2.35 | 2.42 | 2.74 | 2.85 | 2.70 |
EPAM Systems Inc's liquidity ratios, as indicated by the current ratio, quick ratio, and cash ratio, have generally shown a consistent and strong liquidity position over the reported quarters.
The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has steadily increased from Q1 2022 to Q2 2023, reaching a peak of 4.92 in Q2 2023. This indicates that the company is able to meet its short-term obligations with a high level of ease.
Similarly, the quick ratio, also known as the acid-test ratio, reflects the company's ability to pay off its current liabilities without relying on the sale of inventory. EPAM Systems Inc's quick ratio has mirrored the trend of the current ratio, showing a strong liquidity position.
The cash ratio, which provides a more stringent measure of liquidity by considering only cash and cash equivalents to cover current liabilities, has also increased steadily over the quarters, reaching 3.40 in Q4 2023. This suggests that the company has a sufficient amount of cash on hand to cover its immediate obligations.
Overall, EPAM Systems Inc's liquidity ratios demonstrate a healthy financial position with ample liquidity to support its operations and meet 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 | -3.59 | -2.82 | -3.00 | -3.13 | -3.43 | -3.25 | -2.73 | -2.58 | -3.65 | -1.33 | -1.78 | -1.43 | -2.15 | -2.35 | -1.70 | -1.22 | -1.92 | 79.84 | 84.24 | 83.84 |
EPAM Systems Inc's cash conversion cycle has shown relatively stable performance over the past eight quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From Q1 2022 to Q1 2023, the cash conversion cycle improved slightly from 76.71 days to 66.97 days, indicating that the company has become more efficient in managing its working capital over this period. However, a closer look reveals that there was a slight increase in the cycle in Q2 2022 and Q3 2022, which could be a cause for concern.
Despite minor fluctuations, EPAM's cash conversion cycle generally remained within a narrow range of 66 to 73 days over the past two years. This stability suggests that the company has been effectively managing its inventory, accounts receivable, and accounts payable to optimize its cash flow efficiency.
Overall, EPAM Systems Inc's cash conversion cycle analysis indicates that the company has been maintaining a consistent level of working capital efficiency, with room for potential improvements in certain quarters to further enhance its cash flow management.