Fulgent Genetics Inc (FLGT)
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 | 6.96 | 8.95 | 8.15 | 7.09 | 7.13 | 6.79 | 5.29 | 5.40 | 5.81 | 4.23 | 4.66 | 3.35 | 4.02 | 3.39 | 6.33 | 6.37 | 9.96 | 9.22 | 11.96 | 11.33 |
| Quick ratio | 6.53 | 8.44 | 7.62 | 11.18 | 10.50 | 9.98 | 5.10 | 3.63 | 10.22 | 4.03 | 7.63 | 3.19 | 3.85 | 3.01 | 5.36 | 5.81 | 9.36 | 8.80 | 11.19 | 10.62 |
| Cash ratio | 5.81 | 7.62 | 7.07 | 10.63 | 9.68 | 8.95 | 4.04 | 2.49 | 8.88 | 3.19 | 6.39 | 2.09 | 2.30 | 1.30 | 3.22 | 4.70 | 7.59 | 7.55 | 9.28 | 9.19 |
Fulgent Genetics Inc has demonstrated consistently strong liquidity ratios over the quarters analyzed. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a general increasing trend from Q1 2022 to Q4 2023, remaining well above 1 in all periods. This indicates that Fulgent Genetics has more than enough current assets to meet its current liabilities, providing a comfortable buffer for short-term financial obligations.
Similarly, the quick ratio, also known as the acid-test ratio, which excludes inventory from current assets, has followed a similar increasing trend over the periods analyzed. This suggests that the company can cover its short-term liabilities even more swiftly without relying on selling inventory.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents to cover current liabilities, has also shown a positive trajectory over the quarters. This implies that Fulgent Genetics maintains a healthy stash of cash relative to its short-term liabilities, enhancing its ability to settle obligations promptly.
Overall, the liquidity ratios indicate that Fulgent Genetics Inc has a strong financial position with ample liquidity to meet its short-term obligations comfortably. This bodes well for the company's ability to navigate unforeseen challenges and capitalize on opportunities in a dynamic business environment.
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 | 47.36 | 43.74 | 16.08 | 15.80 | 15.56 | 37.86 | 15.38 | 40.14 | 37.56 | 38.02 | 80.83 | 121.01 | 133.92 | 259.56 | 88.00 | 35.14 | 39.99 | 12.58 | 57.63 | 41.14 |
The cash conversion cycle of Fulgent Genetics Inc fluctuated during the past eight quarters. The company's cash conversion cycle, a measure of how long it takes to convert investments in inventory and other resources back into cash flow, ranged from a low of 16.44 days in Q2 2022 to a high of 49.14 days in Q3 2023.
A lower cash conversion cycle indicates that the company is able to convert its investments into cash more quickly, which can be a positive sign of efficient operations. Conversely, a higher cash conversion cycle suggests that the company may be facing challenges in converting its resources into cash.
Overall, the trend in Fulgent Genetics Inc's cash conversion cycle shows some variability, with fluctuations in efficiency in managing its working capital over the past eight quarters. Further analysis would be needed to understand the underlying factors driving these fluctuations and to assess the overall effectiveness of the company's working capital management strategies.