FormFactor Inc (FORM)
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 | 4.38 | 3.91 | 3.85 | 3.75 | 3.17 | 3.15 | 3.37 | 3.60 | 3.52 | 3.17 | 3.23 | 3.40 | 3.15 | 3.35 | 3.70 | 3.63 | 3.07 | 2.75 | 3.38 | 3.36 |
| Quick ratio | 3.29 | 2.57 | 2.67 | 1.84 | 2.18 | 2.21 | 2.34 | 2.65 | 2.63 | 2.32 | 2.37 | 2.53 | 2.35 | 2.48 | 2.82 | 2.80 | 2.33 | 2.01 | 2.42 | 2.41 |
| Cash ratio | 2.50 | 1.89 | 1.91 | 1.84 | 1.59 | 1.54 | 1.67 | 1.92 | 1.86 | 1.65 | 1.67 | 1.83 | 1.65 | 1.77 | 2.12 | 2.04 | 1.62 | 1.41 | 1.72 | 1.59 |
FormFactor Inc's liquidity ratios show a consistently strong liquidity position over the past few quarters. The current ratio has been consistently above 3, indicating that the company has more than enough current assets to cover its current liabilities. This suggests FormFactor Inc is well-positioned to meet its short-term obligations.
Similarly, the quick ratio, which excludes inventory from current assets, also demonstrates a healthy liquidity position, ranging between 2 and 3. This metric provides a more conservative measure of liquidity, and FormFactor Inc appears to have an adequate level of highly liquid assets to cover its short-term liabilities without relying on selling inventory.
The cash ratio, which focuses solely on cash and cash equivalents, also shows a strong trend, remaining above 1.5 in most periods. This indicates that FormFactor Inc has a solid level of cash reserves to cover its short-term obligations without relying on other current assets.
Overall, FormFactor Inc's liquidity ratios reflect a robust liquidity position, providing assurance that the company has the resources to meet its short-term financial commitments effectively.
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 | 85.57 | 82.68 | 87.92 | 33.42 | 75.45 | 86.37 | 101.18 | 90.67 | 87.83 | 81.04 | 83.01 | 76.33 | 81.38 | 74.65 | 81.42 | 81.98 | 93.09 | 84.64 | 94.61 | 97.90 |
FormFactor Inc's cash conversion cycle has shown some variability over the past few quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales.
In general, a shorter cash conversion cycle is favorable as it indicates that the company is able to efficiently manage its working capital.
Looking at the data provided, FormFactor Inc's cash conversion cycle has ranged from a low of 33.42 days in March 2023 to a high of 101.18 days in June 2022. This variability suggests fluctuations in the company's efficiency in managing its assets and liabilities to generate cash inflows.
It is important for FormFactor Inc to monitor and potentially improve its cash conversion cycle to ensure effective working capital management and optimize cash flow generation.