Exponent Inc (EXPO)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 2.74 | 2.34 | 2.20 | 2.96 | 3.13 |
| Quick ratio | 1.59 | 1.16 | 1.02 | 1.95 | 2.07 |
| Cash ratio | 1.59 | 1.16 | 1.02 | 1.95 | 2.07 |
Exponent Inc's liquidity ratios have shown some fluctuations over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, decreased from 3.13 in 2020 to 2.74 in 2024. Despite this decline, the current ratio remains above 1, indicating that Exponent Inc has more than enough current assets to cover its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also decreased from 2.07 in 2020 to 1.59 in 2024. This suggests a decrease in Exponent Inc's ability to quickly cover its short-term obligations with its most liquid assets.
The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, remained relatively stable over the years, ranging from 1.02 to 2.07. This indicates that Exponent Inc has a sufficient amount of cash to meet its immediate obligations.
Overall, while there have been some fluctuations in Exponent Inc's liquidity ratios, the company appears to maintain a strong liquidity position, with a current ratio consistently above 1 and a cash ratio showing stability. However, management should monitor the trend in quick ratio to ensure that the company remains able to meet its short-term obligations without relying too heavily on inventory.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Based on the data provided, Exponent Inc's cash conversion cycle has consistently been 0.00 days from December 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales. A cash conversion cycle of 0.00 days indicates that Exponent Inc efficiently manages its working capital, effectively turning inventory and resources into cash without any delay. This efficient management of working capital suggests that the company is able to generate cash quickly from its operational activities, which can contribute to its liquidity and overall financial health.