Gen Digital Inc. (GEN)

Liquidity ratios

	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	Dec 31, 2019	Sep 30, 2019	Jul 5, 2019
Current ratio	0.51	0.67	0.44	0.40	0.43	0.48	0.57	0.62	0.74	0.75	0.69	0.80	0.72	1.01	1.03	0.77	1.17	2.88	1.93	0.71
Quick ratio	0.45	0.59	0.35	0.31	0.37	0.41	0.50	0.49	0.67	0.68	0.55	0.56	0.54	0.59	0.60	0.44	0.86	2.71	0.36	0.47
Cash ratio	0.32	0.19	0.26	0.23	0.26	0.28	0.39	0.49	0.62	0.62	0.55	0.56	0.45	0.59	0.60	0.44	0.86	2.71	0.36	0.47

Gen Digital Inc.'s liquidity ratios, namely the current ratio, quick ratio, and cash ratio, have fluctuated over the past few quarters. The current ratio, which indicates the company's ability to cover short-term liabilities with current assets, has been declining from 0.74 in Mar 31, 2022, to 0.51 in Mar 31, 2024. This downward trend suggests a potential strain on the company's short-term liquidity.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a decreasing trend from 0.67 in Dec 31, 2021, to 0.45 in Mar 31, 2024. The decreasing quick ratio indicates that Gen Digital Inc. may face challenges in meeting its short-term obligations without relying on inventory.

Lastly, the cash ratio, which provides an insight into the company's ability to cover immediate liabilities with cash and cash equivalents, has shown volatility but generally remained below 1.0 in recent quarters. This suggests that Gen Digital Inc. may have limited cash resources to meet its short-term obligations without resorting to other liquid assets.

Overall, the declining trends in both the current and quick ratios, along with the consistently low cash ratio, point towards potential liquidity challenges for Gen Digital Inc. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term financial obligations effectively.

Additional liquidity measure

		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	Dec 31, 2019	Sep 30, 2019	Jul 5, 2019
Cash conversion cycle	days	-0.69	139.83	1.39	0.01	11.45	23.40	22.15	-13.42	13.97	2.33	-21.64	156.43	212.98	205.82	198.03	356.42	169.96	55.62	5,921.21	-110.48

Gen Digital Inc.'s cash conversion cycle has fluctuated significantly over the past few quarters. The cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash received from customers. A negative cash conversion cycle implies that the company is able to collect cash from customers before needing to pay its suppliers for inventory, which can be a favorable sign of efficient cash management.

Looking at the historical data, we can see that Gen Digital Inc. experienced a wide range of cash conversion cycle days, from a very low of -110.48 days to a high of 5,921.21 days. The negative cash conversion cycle experienced on various occasions indicates that the company is efficient in managing its working capital, while the extremely high days highlight periods where the company may have faced challenges in converting investments into cash effectively.

It is important for Gen Digital Inc. to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow management and efficient operations. By analyzing the trends in the cash conversion cycle over time, the company can identify areas for improvement in working capital management and strive for consistent and favorable cash conversion cycle figures in the future.