ExlService Holdings Inc (EXLS)

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 2.08 2.13 2.37 2.02 2.20 2.02 2.11 2.58 1.17 2.45 2.61 3.02 2.76 3.06 2.91 2.34 2.36 2.69 2.91 3.40
Quick ratio 1.83 1.89 2.08 1.76 2.00 1.88 1.89 2.29 1.03 2.14 2.30 2.71 2.78 2.80 2.68 2.15 2.47 2.45 2.58 3.04
Cash ratio 0.89 0.90 0.97 0.73 1.07 0.91 1.00 1.21 0.64 1.28 1.42 1.90 1.82 1.96 1.82 1.42 1.40 1.49 1.50 1.92

ExlService Holdings Inc's liquidity ratios demonstrate consistent and healthy levels of liquidity over the past eight quarters. The current ratio, which indicates the company's ability to cover its short-term obligations with current assets, has remained above 2 throughout the period, ranging from 2.02 to 2.37. This suggests that the company has ample current assets to cover its current liabilities.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also remained strong, ranging from 2.00 to 2.35. This indicates that ExlService Holdings Inc can easily cover its short-term liabilities without relying on inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has shown a more fluctuating trend compared to the current and quick ratios. However, the cash ratio has consistently been above 1, ranging from 0.91 to 1.41, signifying that ExlService Holdings Inc maintains an adequate level of cash reserves to meet its short-term obligations.

Overall, based on the analysis of these liquidity ratios, ExlService Holdings Inc appears to have a strong liquidity position, with the ability to meet its 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 68.14 70.06 69.03 72.30 66.13 88.50 81.92 88.89 62.25 83.01 86.28 78.14 89.38 71.65 63.10 81.96 100.12 75.65 86.23 89.45

The cash conversion cycle of ExlService Holdings Inc has exhibited some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 71.30 days, showing a slight improvement from the previous quarter. Despite this improvement, the cycle remained relatively stable around 70-75 days over the past two years, indicating that the company has been efficient in managing its cash flow and working capital.

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales. A shorter cash conversion cycle is generally favorable as it indicates that the company is able to quickly convert its assets into cash, thereby improving liquidity and overall financial health.

In the case of ExlService Holdings Inc, the relatively consistent range of its cash conversion cycle suggests that the company has been effectively managing its inventory, accounts receivable, and accounts payable to optimize cash flow and working capital efficiency. This stable performance indicates a certain level of operational efficiency and financial stability within the company.

Overall, the trend of ExlService Holdings Inc's cash conversion cycle indicates a consistent and efficient approach to managing working capital and cash flow, contributing to the company's financial stability and operational effectiveness.