ExlService Holdings Inc (EXLS)

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 2.74 3.02 2.45 2.54 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
Quick ratio 2.22 2.62 2.10 2.22 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
Cash ratio 1.17 1.28 0.96 0.94 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

ExlService Holdings Inc's liquidity ratios indicate the company's ability to meet its short-term obligations.

The current ratio, which measures the company's short-term liquidity by comparing current assets to current liabilities, improved steadily from March 31, 2020, to September 30, 2021, peaking at 3.06. However, there was a significant decline in the current ratio by December 31, 2021, and it remained relatively low through June 30, 2022. The current ratio then improved but fluctuated until September 30, 2024, where it reached 3.02, indicating an improvement in the company's ability to cover its short-term liabilities.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, followed a similar trend to the current ratio, with fluctuations but generally showing a pattern of improvement overall. The quick ratio peaked at 2.80 on September 30, 2020, but experienced a sharp decline by December 31, 2021. It then fluctuated until September 30, 2024, where it reached 2.62.

The cash ratio, which is the most conservative measure of liquidity as it only includes cash and cash equivalents, declined steadily from March 31, 2020, to December 31, 2021, where it hit the lowest point of 0.64. However, the cash ratio showed some improvement from March 31, 2022, to December 31, 2024, reaching a high of 1.28 on September 30, 2024.

Overall, while there were fluctuations in ExlService Holdings Inc's liquidity ratios over the analyzed period, the current ratio and quick ratio showed improvement in recent periods, suggesting the company's strengthened ability to meet its short-term obligations. The cash ratio also showed some recovery after a significant decline, indicating a more secure cash position for the company.

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 59.20 78.05 69.54 73.20 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

ExlService Holdings Inc's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle was highest at 89.38 days on December 31, 2020 and shows a decreasing trend to 59.20 days on December 31, 2024, indicating improvement in the efficiency of the company's working capital management.

The company managed to bring down its cash conversion cycle notably in the latter part of the analyzed period, with relatively lower figures in the later quarters of 2023 and 2024. This reduction suggests that ExlService Holdings Inc improved its management of inventory, accounts receivable, and accounts payable, resulting in a faster conversion of investments into cash.

Overall, a decreasing trend in the cash conversion cycle is typically seen as a positive sign, as it indicates that the company is managing its working capital more effectively, which can lead to increased liquidity and potentially improved financial performance.