ESCO Technologies Inc (ESE)

Liquidity ratios

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 Dec 31, 2019
Current ratio 1.91 2.10 2.15 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
Quick ratio 0.88 0.89 0.85 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
Cash ratio 0.19 0.20 0.21 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

ESCO Technologies Inc's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio has generally been above 1, indicating that the company has been able to meet its short-term obligations with its current assets. The ratio peaked at 2.15 in Mar 2024 and has since hovered around the 2.00 mark.

On the other hand, the quick ratio, which excludes inventory from current assets, has been lower than the current ratio, indicating that the company may have difficulty covering its liabilities if inventory cannot be quickly converted to cash. The quick ratio has shown some volatility, with a low of 0.70 in Mar 2022 and a high of 0.89 in Jun 2024.

The cash ratio, which is the most stringent measure of liquidity, shows the company's ability to cover its current liabilities with cash and cash equivalents. ESCO Technologies Inc's cash ratio has varied significantly, ranging from 0.13 to 0.43. It reached its peak in Sep 2022 and has generally been above the 0.20 mark in recent quarters.

Overall, ESCO Technologies Inc's liquidity position seems relatively healthy, with the current ratio consistently above 1 and the cash ratio showing a generally positive trend. However, the company may need to monitor its quick ratio closely to ensure it can meet short-term obligations efficiently.

Additional liquidity measure

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 Dec 31, 2019
Cash conversion cycle days 151.78 160.34 148.92 151.32 137.59 149.35 142.57 138.71 128.59 155.24 145.79 149.66 148.99 142.42 145.47 153.54 139.79 145.29 143.81 140.32

The cash conversion cycle for ESCO Technologies Inc has shown some fluctuations over the past few quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally preferable as it signifies that the company is able to quickly recover its costs and generate cash.

Looking at the data provided, we can see that ESCO Technologies Inc's cash conversion cycle has varied between 128.59 days to 160.34 days over the past few quarters. The company's longest cash conversion cycle was observed in June 2024 at 160.34 days, while the shortest cycle was in September 2022 at 128.59 days.

Overall, the company's cash conversion cycle has been relatively high, indicating that ESCO Technologies Inc may be taking longer to convert its investments in inventory and other resources into cash from sales. This could potentially point towards inefficiencies in the company's management of working capital or inventory levels.

It would be advisable for ESCO Technologies Inc to analyze the drivers behind these fluctuations in the cash conversion cycle and focus on optimizing working capital management practices to improve cash flow efficiency and operational performance.