Acushnet Holdings Corp (GOLF)

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 2.06 2.10 2.28 2.69 2.21 1.21 2.53 2.73 1.93 2.17 1.95 1.97 2.01 2.37 2.44 2.31 2.24 2.17 1.80 1.78
Quick ratio 112.24 0.19 0.17 0.11 0.15 0.07 0.14 0.12 0.11 0.22 0.20 0.21 0.58 0.72 0.59 0.28 0.42 0.30 0.24 0.12
Cash ratio 112.24 0.19 0.17 0.11 0.15 0.07 0.14 0.12 0.11 0.22 0.20 0.21 0.58 0.72 0.59 0.28 0.42 0.30 0.24 0.12

The current ratio of Acushnet Holdings Corp has shown a fluctuating trend over the period under consideration, starting at 1.78 in March 2020, peaking at 2.73 in March 2023, and then declining to 2.06 by December 2024. This ratio indicates the company's ability to cover its short-term obligations with its current assets, with a ratio above 1 considered healthy.

The quick ratio, which excludes inventory from current assets, also exhibited variability, ranging from a low of 0.07 in September 2023 to a high of 0.72 in September 2021. This ratio provides a more stringent measure of liquidity than the current ratio, as it considers only the most liquid assets.

In contrast, the cash ratio remained relatively stable throughout the period, hovering around 0.10 to 0.20, except for an anomalous spike to 112.24 in December 2024. This ratio reflects the company's ability to settle its current liabilities using only its cash and cash equivalents.

Overall, the liquidity ratios of Acushnet Holdings Corp indicate generally positive liquidity levels, with the company maintaining a reasonable ability to meet its short-term obligations, although fluctuations in the quick ratio and the unusual spike in the cash ratio in December 2024 warrant further investigation.

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 165.62 160.48 155.44 171.77 198.30 167.80 181.88 207.80 225.70 180.82 158.99 156.24 146.54 117.23 110.55 142.67 166.88 152.13 181.21 165.39

The cash conversion cycle of Acushnet Holdings Corp has exhibited fluctuations over the provided periods. The cycle indicates the average number of days it takes for the company to convert its investments in inventory into cash flows from sales.

The trend shows variations in the efficiency of managing its operating cycle. A decreasing trend in the cycle indicates that the company is managing its inventory and receivables more efficiently, allowing for quicker cash conversion. Conversely, an increasing trend suggests the company may be facing challenges in managing its working capital effectively.

For Acushnet Holdings Corp, we note that the cash conversion cycle ranged from a low of 110.55 days on June 30, 2021, to a high of 225.70 days on December 31, 2022. The company has had periods of both improvement and deterioration in its cash conversion efficiency during the analyzed timeframe.

It is essential for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimal working capital management and liquidity. By maintaining a balance between inventory, accounts receivable, and accounts payable, Acushnet can optimize its cash flow and overall financial performance.