Genpact Limited (G)
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 | 2.16 | 1.85 | 1.89 | 1.54 | 1.44 | 1.91 | 1.88 | 1.84 | 1.61 | 1.08 | 1.58 | 1.43 | 1.47 | 1.58 | 1.52 | 2.03 | 1.45 | 1.64 | 1.49 | 1.57 |
| Quick ratio | 1.94 | 1.73 | 1.73 | 1.37 | 1.29 | 1.63 | 1.61 | 1.65 | 1.49 | 0.93 | 1.35 | 1.33 | 1.37 | 1.43 | 1.35 | 1.82 | 1.30 | 1.45 | 1.36 | 1.40 |
| Cash ratio | 0.70 | 0.79 | 0.76 | 0.40 | 0.44 | 0.55 | 0.53 | 0.58 | 0.59 | 0.32 | 0.42 | 0.62 | 0.69 | 0.70 | 0.61 | 0.76 | 0.57 | 0.70 | 0.68 | 0.43 |
Genpact Limited's liquidity ratios have shown some fluctuations over the analyzed periods. The current ratio ranged from a high of 2.16 on December 31, 2024, to a low of 1.08 on September 30, 2022. Overall, the current ratio stayed mostly above 1, indicating that the company generally had more current assets than current liabilities to cover its short-term obligations.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also displayed variability. The quick ratio fluctuated between 0.93 on September 30, 2022, and 1.94 on December 31, 2024. Similar to the current ratio, the quick ratio mostly remained above 1, suggesting that Genpact had an adequate level of liquid assets to meet its short-term liabilities.
The cash ratio, representing the most conservative measure of liquidity as it only considers cash and cash equivalents, ranged from 0.32 on September 30, 2022, to 0.79 on September 30, 2024. This ratio showed that Genpact had a mixed ability to cover its current liabilities solely with its cash reserves.
In conclusion, while the current and quick ratios generally indicated favorable liquidity positions for Genpact Limited, the cash ratio highlighted potential fluctuations in the company's ability to cover its short-term obligations with readily available cash alone. It is essential for the company to maintain a healthy liquidity position to ensure its operational and financial stability.
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 | 87.69 | 92.96 | 89.00 | 89.47 | 87.94 | 83.86 | 78.43 | 80.94 | 78.73 | 80.25 | 83.90 | 82.94 | 77.29 | 85.78 | 84.21 | 83.71 | 84.85 | 80.46 | 84.29 | 87.94 |
The cash conversion cycle of Genpact Limited has shown some fluctuations over the analyzed period. A lower cash conversion cycle indicates a more efficient management of working capital.
The cycle started at 87.94 days on March 31, 2020, and gradually decreased to 77.29 days by December 31, 2021, signaling an improvement in the company's ability to convert its resources into cash. This trend reversed slightly in the following periods, reaching 92.96 days by September 30, 2024.
Overall, Genpact Limited's cash conversion cycle has displayed some variability but generally reflects a proactive approach to managing its cash flows and working capital efficiency. It is important for the company to closely monitor this metric to ensure optimal financial performance and liquidity management in the future.