Ichor Holdings Ltd (ICHR)

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 4.06 3.90 4.25 3.97 3.09 2.61 2.52 2.37 2.22 3.04 2.73 2.75 3.06 2.20 2.04 1.85 1.69 1.90 2.29 2.27
Quick ratio 1.48 1.55 1.70 1.62 1.34 1.17 0.23 0.18 1.05 1.93 1.85 1.92 2.18 1.23 1.04 0.85 0.89 0.93 0.97 0.94
Cash ratio 0.81 0.66 0.80 0.58 0.52 0.28 0.23 0.18 0.36 1.25 1.25 1.33 1.56 0.53 0.37 0.27 0.37 0.26 0.48 0.35

Ichor Holdings Ltd's liquidity ratios have shown fluctuating trends over the provided periods. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, improved from 4.06 at the end of December 2023 to 2.27 at the end of September 2019. This suggests a generally strong liquidity position, with the company having more than enough current assets to cover its short-term obligations.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also demonstrated variability. It ranged from 1.48 at the end of December 2023 to 0.94 at the end of March 2019. Despite this fluctuation, the quick ratio generally remained above 1, indicating the company's ability to meet its short-term liabilities with its most liquid assets.

The cash ratio, representing the firm's ability to pay off its current liabilities with its cash and cash equivalents, fluctuated notably from 0.81 at the end of December 2023 to 0.35 at the end of March 2019. The company showed a substantial improvement in its cash ratio in the earlier periods, suggesting a better ability to settle its near-term obligations with cash on hand.

Overall, Ichor Holdings Ltd's liquidity ratios exhibit a mix of strengths and fluctuations over the analyzed periods. The company generally maintains a strong liquidity position, with an improving trend in its ability to cover short-term obligations with liquid assets.

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 114.13 122.05 106.70 103.53 92.74 99.65 47.79 42.35 75.61 63.53 49.33 43.11 48.34 58.11 64.32 59.40 47.99 62.58 57.47 56.09

The cash conversion cycle of Ichor Holdings Ltd has shown fluctuations over the past several quarters. The company's ability to convert its resources into cash has fluctuated between longer and shorter cycles. In the latest period, the cash conversion cycle was 114.13 days, indicating that it took the company approximately 114 days to convert its investments in inventory and accounts receivable into cash.

Looking at the trend, the cash conversion cycle has generally been increasing over the past few quarters, suggesting a potential inefficiency in managing the company's working capital. A longer cash conversion cycle can tie up resources and affect the company's liquidity and overall financial performance.

However, it is worth noting that there was a significant decrease in the cash conversion cycle in the second quarter of 2022, dropping to 47.79 days. This could indicate a period of improved working capital management efficiency. Nonetheless, the trend reverted towards longer cycles in subsequent quarters.

Overall, it is important for Ichor Holdings Ltd to closely monitor and manage its cash conversion cycle to optimize working capital efficiency and enhance overall financial performance.