FTI Consulting Inc (FCN)

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 1.95 2.08 2.20 2.46 1.74 2.21 2.30 2.51 1.96 2.15 2.26 2.40 1.91 1.96 2.16 2.32 1.69 1.93 2.18 2.36
Quick ratio 0.71 0.47 0.32 0.39 0.37 0.28 0.32 0.44 0.64 0.50 0.45 0.53 0.69 0.53 0.46 0.47 0.44 0.50 0.59 0.49
Cash ratio 0.71 0.47 0.32 0.39 0.37 0.28 0.32 0.44 0.64 0.50 0.45 0.53 0.69 0.53 0.46 0.47 0.44 0.50 0.59 0.49

FTI Consulting Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has fluctuated over the years, ranging from a high of 2.51 as of March 31, 2023 to a low of 1.69 as of December 31, 2020. Generally, a current ratio above 1 suggests the company has more current assets than current liabilities, with a ratio closer to 2 indicating a stronger liquidity position.

The quick ratio, which excludes inventory from current assets, also shows variability, with a range from 0.28 as of September 30, 2023 to 0.71 as of December 31, 2024. A quick ratio above 1 is considered favorable as it suggests the company can meet its short-term liabilities without relying on selling inventory.

The cash ratio, which is the most conservative measure of liquidity, reflects the company's ability to cover its current liabilities with its most liquid assets. The trend in the cash ratio mirrors that of the quick ratio, with a similar range of values over the reporting periods. A cash ratio above 0.2 to 0.3 is typically desired to ensure the company has sufficient cash on hand to meet its obligations without relying on external sources.

In summary, while FTI Consulting Inc's liquidity ratios have shown some fluctuations over time, the current, quick, and cash ratios generally indicate that the company has maintained a satisfactory level of liquidity to cover its short-term obligations.

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 7.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11.43 0.00 0.00 0.00 12.77 0.00 0.00 0.00

FTI Consulting Inc's cash conversion cycle provides insight into how efficiently the company is managing its cash flows. A cash conversion cycle of 0.00 days indicates that the company is able to convert its inventory into cash quickly, which is generally a positive sign. However, it is important to note that a very low or zero cash conversion cycle may also suggest aggressive sales practices or potential issues in accurately tracking inventory.

The slight fluctuation in the cash conversion cycle, with occasional spikes such as 12.77 days in December 31, 2020, and 11.43 days in December 31, 2021, could be indicative of changes in the company's operating cycle and management of accounts receivable, accounts payable, and inventory levels. Efforts should be made to analyze the reasons behind these fluctuations and ensure efficient management of working capital to optimize cash flows.

Overall, FTI Consulting Inc's consistent low cash conversion cycle is a positive indicator of its ability to efficiently manage its working capital and convert sales into cash. Keeping a close watch on this metric will be crucial in maintaining financial health and sustainable growth in the future.