National Vision Holdings Inc (EYE)

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 0.53 0.57 0.55 1.01 1.00 1.34 1.36 1.34 1.38 1.42 1.36 1.54 1.50 1.85 1.64 1.83 1.72 1.56 1.45 1.53
Quick ratio 0.16 0.19 0.27 0.41 0.39 0.74 0.73 0.71 0.70 0.79 0.73 0.91 0.89 1.26 1.10 1.26 1.14 1.06 0.82 0.92
Cash ratio 0.16 0.19 0.27 0.41 0.39 0.74 0.73 0.71 0.70 0.79 0.73 0.91 0.89 1.26 1.10 1.26 1.14 1.06 0.82 0.92

National Vision Holdings Inc's liquidity ratios show a fluctuating trend over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 1, indicating that the company has had enough current assets to meet its short-term obligations. However, there has been a slight decline in the current ratio from 1.83 in March 2021 to 1.00 in December 2023, which may raise concerns about the company's liquidity position.

The quick ratio, which provides a more stringent test of liquidity by excluding inventory from current assets, has also experienced fluctuations. The quick ratio has generally been lower than the current ratio, indicating that inventory forms a significant portion of the company's current assets. The ratio declined significantly from 1.26 in March 2021 to 0.16 in December 2024, suggesting potential difficulties in meeting short-term obligations without relying on inventory.

The cash ratio, which measures the company's ability to cover current liabilities with its most liquid assets (cash and equivalents), follows a similar trend to the quick ratio. The cash ratio has also shown a decreasing pattern over the years, signaling a potential decrease in the company's ability to meet its short-term obligations solely with cash and equivalents.

Overall, while National Vision Holdings Inc has generally maintained a current ratio above 1, indicating a favorable liquidity position, the declining trend in both the quick ratio and cash ratio raises concerns about the company's ability to meet short-term obligations in a timely manner, especially as of the December 31, 2024 data point where both ratios had significantly decreased.

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 38.68 32.88 32.82 41.48 42.70 45.09 46.11 47.78 48.57 48.36 51.67 50.76 49.89 50.35 49.68 55.03 51.63 53.81 57.25 58.52

The cash conversion cycle of National Vision Holdings Inc has shown a decreasing trend over the past few years, indicating an improvement in the efficiency of its working capital management. The company's cash conversion cycle decreased from 58.52 days as of March 31, 2020, to 38.68 days as of December 31, 2024.

A lower cash conversion cycle suggests that the company is able to convert its investments in inventory into cash more quickly. This could be a result of enhanced inventory management, efficient receivables collection, or effective payment to suppliers.

The downward trend in the cash conversion cycle indicates that National Vision Holdings Inc has been able to optimize its operations to shorten the time it takes to convert its resources into cash. This can lead to improved liquidity, reduced risk of inventory obsolescence, and better cash flow management.

Overall, the decreasing trend in the cash conversion cycle of National Vision Holdings Inc reflects positively on the company's operational efficiency and financial performance.