Exponent Inc (EXPO)

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 2.34 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 2.94 3.48 3.60 4.22
Quick ratio 2.19 2.46 2.60 2.74 2.08 2.28 1.30 1.97 2.86 2.02 1.95 2.44 3.02 2.16 2.12 1.97 1.87 2.08 2.09 2.38
Cash ratio 1.16 1.06 1.19 1.15 1.02 1.08 1.30 1.97 1.95 2.02 1.95 2.44 2.07 2.16 2.12 1.97 1.87 2.08 2.09 2.38

Exponent Inc's liquidity ratios have exhibited variability over the past few quarters. The current ratio, which measures the firm's ability to meet short-term obligations with its current assets, has generally been above 2.0, indicating a healthy liquidity position. However, there has been some fluctuation, with the ratio peaking at 4.02 in March 2022 and dropping to 2.20 in December 2022.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, shows a similar trend of variability. Exponent Inc's quick ratio has generally been above 2.0, suggesting the company has a strong ability to cover its short-term liabilities without relying on inventory. However, there were significant fluctuations in the quick ratio, especially in June 2022 and March 2020, where the ratio dropped to 1.30 and 1.87, respectively.

The cash ratio, which is the most conservative measure of liquidity and indicates the firm's ability to cover its current liabilities with cash and cash equivalents, has also shown fluctuations. The ratio has generally been above 1.0, indicating that Exponent Inc has sufficient cash to cover its short-term obligations. However, there was a notable increase in the cash ratio from September 2021 to March 2022, followed by some stabilization.

Overall, while Exponent Inc's liquidity ratios demonstrate a generally strong liquidity position, it is important to closely monitor the fluctuations in these ratios to ensure the company can effectively meet its short-term financial obligations.

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 109.17 122.58 119.94 120.29 110.27 121.33 0.00 0.00 105.60 0.00 0.00 0.00 97.39 0.00 0.00 0.00 -6.06 0.00 0.00 0.00

The cash conversion cycle of Exponent Inc over the past few quarters has shown fluctuations. In the most recent quarter, ending December 31, 2023, the cash conversion cycle was 109.17 days, which indicates the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales. This is a moderate level compared to previous quarters.

In the preceding quarters, the cash conversion cycle ranged between 110.27 days and 122.58 days. This suggests that the company has been managing its working capital effectively to some extent, but there have been periods of inefficiencies in converting its assets to cash.

It is worth noting that in some quarters there were zero or even negative days in the cash conversion cycle. Zero days may indicate a sign of optimized working capital management, while negative days could imply that the company was able to collect cash from customers before paying its suppliers, leading to a favorable cash position.

Overall, Exponent Inc should continue to monitor and improve its cash conversion cycle to ensure efficient utilization of its resources and maintain a healthy cash flow position.