Exponent Inc (EXPO)
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 | 3.00 | 2.97 | 3.09 | 2.34 | 2.65 | 2.77 | 2.92 | 2.20 | 2.41 | 2.69 | 3.45 | 2.96 | 3.30 | 3.24 | 4.02 | 3.13 | 3.41 | 3.50 | 3.81 |
| Quick ratio | 1.59 | 1.60 | 1.54 | 1.48 | 1.16 | 1.06 | 1.19 | 1.15 | 1.02 | 1.08 | 1.30 | 1.97 | 1.95 | 2.02 | 2.20 | 2.44 | 2.07 | 2.16 | 2.12 | 1.97 |
| Cash ratio | 1.59 | 1.60 | 1.54 | 1.48 | 1.16 | 1.06 | 1.19 | 1.15 | 1.02 | 1.08 | 1.30 | 1.97 | 1.95 | 2.02 | 2.20 | 2.44 | 2.07 | 2.16 | 2.12 | 1.97 |
Exponent Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term financial obligations.
The current ratio, which measures the firm's ability to cover its short-term liabilities with its current assets, has shown some fluctuations over the periods analyzed. It peaked at 4.02 on March 31, 2021, indicating a strong liquidity position at that time. However, it decreased over the subsequent periods, reaching 2.74 on December 31, 2024, which suggests a decline in the company's short-term liquidity.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Similarly to the current ratio, the quick ratio fluctuated over the periods examined. It peaked at 2.44 on March 31, 2021, reflecting a strong ability to cover short-term obligations with liquid assets. Nevertheless, it decreased to 1.59 on December 31, 2024, indicating a potential decrease in the company's ability to meet immediate obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio, measures a company's ability to cover current liabilities with its cash and cash equivalents. The trend in Exponent Inc's cash ratio mirrors that of the quick ratio, showing fluctuations over the periods. It peaked at 2.44 on March 31, 2021, but decreased to 1.59 on December 31, 2024.
Overall, Exponent Inc's liquidity ratios have shown some variability over the periods analyzed, with a general declining trend towards the end of the period. A further analysis of the company's operating cash flows and potential changes in working capital may provide additional insights into its short-term liquidity position.
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Exponent Inc has consistently maintained a cash conversion cycle of 0.00 days throughout the provided data period starting from March 31, 2020, to December 31, 2024. This indicates that the company is efficiently managing its cash flow processes, including the time it takes to convert its investments in inventory and other resources back into cash. A cash conversion cycle of 0.00 days suggests that Exponent Inc has streamlined operations related to inventory turnover, accounts receivable collection, and accounts payable management, leading to minimal delays in converting sales into cash. Efficient cash conversion cycles are beneficial for maintaining liquidity and overall financial health.