Ethan Allen Interiors Inc (ETD)

Liquidity ratios

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 Sep 30, 2019
Current ratio 2.16 2.09 2.31 2.14 2.20 2.02 1.93 1.69 1.61 1.48 1.42 1.29 1.32 1.29 1.31 1.24 1.65 1.96 1.45 1.46
Quick ratio 1.09 0.99 1.13 1.06 1.13 0.99 0.86 0.73 0.64 0.50 0.51 0.44 0.51 0.53 0.47 0.40 0.58 0.87 0.30 0.36
Cash ratio 1.05 0.94 1.08 0.99 1.06 0.90 0.80 0.68 0.56 0.45 0.47 0.40 0.47 0.48 0.43 0.33 0.52 0.80 0.21 0.29

Ethan Allen Interiors Inc's liquidity ratios have shown fluctuations over the past quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been relatively stable, ranging from 1.29 to 2.31, indicating that the company has maintained a healthy level of current assets compared to current liabilities.

On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has been more volatile, ranging from 0.40 to 1.13. This suggests that the company may have varying levels of inventory that could impact its ability to meet short-term obligations quickly.

The cash ratio, which is the most conservative liquidity measure as it only includes cash and cash equivalents, has also shown fluctuations, ranging from 0.21 to 1.08. This indicates that the company has varied levels of cash on hand to cover its short-term liabilities without relying on selling inventory.

Overall, the current ratio indicates that Ethan Allen Interiors Inc has maintained a healthy liquidity position, but the fluctuations in the quick and cash ratios suggest that the company's ability to quickly meet its short-term obligations may vary. It would be important for the company to closely monitor its liquidity position and manage its inventory levels effectively to ensure it can meet its financial obligations in a timely manner.

Additional liquidity measure

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 Sep 30, 2019
Cash conversion cycle days 95.00 94.93 88.03 92.22 88.01 85.31 87.21 89.95 99.87 108.84 97.86 97.24 91.52 106.85 120.05 150.80 177.58 171.07 165.42 173.13

The cash conversion cycle of Ethan Allen Interiors Inc has displayed some fluctuations over the past quarters. The cycle measures the time it takes for a company to convert its resources invested in inventory back into cash.

The trend shows that Ethan Allen Interiors Inc has seen improvements in its cash conversion cycle in recent quarters, signifying better management of its working capital. The cycle has decreased from 173.13 days in Q4 2019 to 95.00 days in Q2 2024. This indicates the company has been able to speed up its inventory turnover and collection of receivables, leading to a more efficient use of cash resources.

However, it is worth noting that the company experienced an increase in the cash conversion cycle in some quarters, such as in Q4 2020 and Q1 2022, where it exceeded 150 days. This suggests potential challenges in managing inventory and collecting receivables during those periods.

Overall, the decreasing trend in the cash conversion cycle indicates improved efficiency in managing working capital, which is essential for maintaining liquidity and financial health. Monitoring and analyzing the cash conversion cycle can help identify areas for further optimization to enhance cash flow management.