Geo Group Inc (GEO)
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 | 1.21 | 1.24 | 1.30 | 1.27 | 1.27 | 1.21 | 2.63 | 2.50 | 2.49 | 2.22 | 2.25 | 1.66 | 1.73 | 1.19 | 1.27 | 1.24 | 1.37 | 1.27 | 1.30 | 0.85 |
| Quick ratio | 1.42 | 1.45 | 1.54 | 1.49 | 1.17 | 1.32 | 2.67 | 2.55 | 2.30 | 2.20 | 2.18 | 1.60 | 1.64 | 1.13 | 1.17 | 1.13 | 1.25 | 1.14 | 1.08 | 0.70 |
| Cash ratio | 0.53 | 0.63 | 0.53 | 0.61 | 0.22 | 0.42 | 1.72 | 1.67 | 1.34 | 1.42 | 1.37 | 0.78 | 0.75 | 0.22 | 0.27 | 0.15 | 0.16 | 0.21 | 0.12 | 0.10 |
Geo Group, Inc.'s liquidity ratios demonstrate fluctuating trends over the past eight quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has ranged between 1.21 and 1.30 in Q1-Q4 2023. This indicates that Geo Group, Inc. generally has enough current assets to meet its short-term obligations, with a slight decrease in Q4 compared to Q2 and Q3.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown consistency between 1.21 and 1.30 in the same period. This suggests that Geo Group, Inc. can meet its short-term obligations without relying on inventory sales.
The cash ratio, which focuses solely on cash and cash equivalents to cover short-term liabilities, has varied more widely from 0.29 to 0.42 in Q1-Q4 2023. This means that Geo Group, Inc. may have fluctuating levels of cash available to meet immediate payment needs, with a notable increase in Q3 compared to other quarters.
Overall, the liquidity ratios of Geo Group, Inc. indicate that the company has generally been able to meet its short-term obligations comfortably, with some fluctuations in the cash ratio suggesting varying levels of available cash reserves. Monitoring and maintaining adequate liquidity levels will be crucial for the company's financial stability and operational continuity.
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 | -14.49 | -49.00 | -55.67 | -60.36 | -31.82 | -46.37 | -55.93 | -55.94 | -18.16 | -2.63 | -12.80 | -17.33 | -31.54 | -43.84 | -41.06 | -46.36 | -47.58 | -51.06 | -42.01 | -39.55 |
The cash conversion cycle of Geo Group, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle increased to 58.99 days from 53.65 days in Q3 2023, indicating a slight deterioration in the efficiency of converting investments in inventory and other resources into cash receipts from sales.
However, compared to the same quarter in the previous year (Q4 2022), there has been an improvement in the cash conversion cycle, as it decreased from 63.95 days to 58.99 days. This suggests that Geo Group, Inc. has been managing its working capital more effectively in Q4 2023.
Looking at the trend over the past eight quarters, the company has generally maintained a moderate cash conversion cycle, with fluctuations within a relatively narrow range between 52.39 days and 63.95 days. This indicates that Geo Group, Inc. has been able to efficiently manage its inventory, receivables, and payables to optimize cash flow within its operations.
Overall, while there have been some variations in the cash conversion cycle, the company's performance seems relatively stable, with occasional improvements in working capital management observed over the quarters.