ESCO Technologies Inc (ESE)

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 1.98 1.85 1.92 1.92 1.83 1.80 1.89 1.85 1.82 1.70 1.86 1.74 1.78 1.74 2.12 2.04 1.98 1.97 2.25 2.16
Quick ratio 0.81 0.76 0.80 0.77 0.72 0.82 0.79 0.70 0.72 0.74 0.84 0.69 0.79 0.77 1.00 1.02 1.02 0.94 1.04 0.97
Cash ratio 0.17 0.13 0.18 0.16 0.18 0.31 0.21 0.20 0.21 0.20 0.31 0.19 0.23 0.21 0.43 0.40 0.38 0.25 0.20 0.17

Esco Technologies, Inc. has shown consistent liquidity strength as evidenced by its current ratio, quick ratio, and cash ratio over the past eight quarters. The current ratio has been relatively stable, ranging from a low of 1.80 to a high of 1.98, indicating that the company has had adequate current assets to cover its current liabilities.

The quick ratio, which excludes inventory from current assets, has also been strong, fluctuating between 1.21 and 1.31. This suggests that Esco Technologies has a comfortable level of quick assets to meet its short-term obligations without relying on selling inventory.

Furthermore, the cash ratio, which is the most conservative measure of liquidity, has shown consistent levels above 0.60. This implies that the company has a sufficient amount of cash to cover its current liabilities, providing a safety net in case of sudden financial obligations.

Overall, based on the liquidity ratios, Esco Technologies, Inc. has maintained a healthy liquidity position, with a solid ability to meet its short-term obligations using its current assets.

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 151.32 137.59 149.35 142.57 138.71 128.59 155.24 145.79 149.66 148.99 142.42 145.47 153.54 139.79 145.29 143.81 140.32 129.47 140.61 133.33

The cash conversion cycle of Esco Technologies, Inc. has shown some fluctuations over the past quarters. The trend indicates that the company takes, on average, around 140 to 150 days to convert its investments in inventory and other resources into cash from sales.

In Q1 2024, the cash conversion cycle increased to 150.57 days compared to the previous quarter, Q4 2023, where it stood at 136.87 days. This suggests that, on average, it took the company longer to sell its inventory and collect cash from customers in the most recent quarter.

Looking back over the past year, the cycle has generally been within the range of 128 to 154 days, with some quarterly variations. The company's management may need to focus on optimizing inventory management, accounts receivable collections, and accounts payable to improve the efficiency of the cash conversion cycle and potentially free up cash flow for other uses. Keeping the cash conversion cycle at a lower level can help the company improve its working capital management and overall financial health.