Fox Factory Holding Corp (FOXF)

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 3.70 3.85 4.08 3.48 3.08 3.31 3.38 3.05 3.15 2.89 2.91 3.29 3.52 3.22 4.23 2.84 3.07 2.92 2.73 2.39
Quick ratio 1.23 1.26 1.33 1.13 1.34 1.31 0.40 0.24 1.40 1.18 1.10 1.47 2.22 1.60 1.84 0.55 0.48 0.31 0.37 0.34
Cash ratio 0.40 0.47 0.51 0.36 0.56 0.58 0.40 0.24 0.78 1.18 1.10 1.47 1.49 1.60 1.84 0.55 0.48 0.31 0.37 0.34

Fox Factory Holding Corp's liquidity ratios show a consistently strong trend over the past five quarters. The current ratio has been consistently above 3.00, indicating the company's ability to cover its short-term liabilities with its current assets, with a high point of 4.23 in Jun 2020. This suggests that Fox Factory Holding Corp has a healthy level of liquidity.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also shown a strong performance, with values mostly above 1.00. The average quick ratio has been around 1.30, demonstrating the company's ability to quickly meet its short-term obligations without relying on inventory sales.

The cash ratio, which is the most conservative liquidity measure, has also been favorable for Fox Factory Holding Corp, with values consistently above 0.30. This indicates that the company holds sufficient cash and cash equivalents to cover its current liabilities without relying on other current assets.

Overall, based on the liquidity ratios, Fox Factory Holding Corp appears to have a healthy liquidity position, with a strong ability to meet its short-term obligations and operational needs.

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 120.29 107.01 108.36 111.01 106.80 110.69 56.37 49.88 101.34 32.92 21.58 20.14 66.55 18.26 47.23 38.45 43.75 41.26 42.85 33.47

The cash conversion cycle for Fox Factory Holding Corp has exhibited fluctuations over the past few quarters. The company's cash conversion cycle, representing the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, was relatively stable but showed some volatility.

In the latest quarter, the cash conversion cycle increased to 120.29 days, indicating that it took the company longer to convert its investments in inventory and receivables into cash. This could suggest potential challenges in managing working capital efficiently or delays in collecting sales revenue.

Looking back at historical data, there was a significant spike in the cash conversion cycle in the second quarter of 2022, reaching 110.69 days, before dropping significantly in the following quarter to 56.37 days. This suggests that the company made improvements in managing its working capital effectively during that period.

Moreover, in the first quarter of 2021, the cash conversion cycle was at its lowest point of 20.14 days, indicating that the company was able to efficiently convert its investments into cash flows in that period. However, since then, there has been an upward trend, with fluctuations in the cash conversion cycle.

Overall, Fox Factory Holding Corp should continually monitor and evaluate its working capital management practices to ensure optimal efficiency in converting investments into cash, as improvements in the cash conversion cycle can positively impact the company's liquidity and overall financial health.