EPAM Systems Inc (EPAM)
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 | 2.96 | 4.56 | 4.84 | 4.68 | 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 |
| Quick ratio | 1.57 | 3.02 | 3.07 | 3.11 | 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 |
| Cash ratio | 1.57 | 3.02 | 3.07 | 3.11 | 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 |
EPAM Systems Inc's liquidity ratios show a healthy trend over the analysis period.
1. Current Ratio: EPAM's current ratio has been consistently above 2, indicating the company's ability to cover its short-term obligations with its current assets. The ratio improved from 3.87 as of March 31, 2020, to a peak of 4.92 as of June 30, 2023. However, there was a slight decline to 2.96 as of December 31, 2024, which is still above the acceptable benchmark of 2.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, measures EPAM's ability to meet its short-term liabilities with its most liquid assets. The company's quick ratio showed a similar positive trend, exceeding 1 in all periods. The ratio peaked at 3.25 as of December 31, 2023, indicating a strong ability to cover immediate obligations without relying on inventory.
3. Cash Ratio: EPAM's cash ratio, a more stringent measure of liquidity, assesses the ability to pay off current liabilities solely with available cash and cash equivalents. The company's cash ratio remained above 1 throughout the period, signaling a sound liquidity position. The ratio reached its highest point at 3.25 as of December 31, 2023, showing EPAM's ability to settle short-term obligations with cash on hand.
Overall, EPAM Systems Inc demonstrates a robust liquidity position based on its current, quick, and cash ratios, providing reassurance that the company can meet its short-term financial obligations effectively.
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of EPAM Systems Inc has consistently been 0.00 days over the past few years, indicating that the company has been efficiently managing its cash flow operations. This means that EPAM Systems is able to quickly convert its investments in inventory and other resources into cash from sales, and then reinvest that cash back into the business. A shorter cash conversion cycle is generally seen as a positive sign, as it means the company is able to operate with low working capital needs and generate cash quickly. EPAM Systems Inc's ability to maintain a low and consistent cash conversion cycle suggests strong management of working capital and efficient operations.