IDEXX Laboratories Inc (IDXX)

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 1.31 1.42 1.37 1.57 1.57 1.43 1.33 1.08 0.89 0.89 0.89 1.12 1.25 1.48 1.54 1.77 1.82 1.65 1.44 0.85
Quick ratio 0.27 0.12 0.36 0.42 0.48 0.34 0.15 0.10 0.09 0.08 0.10 0.21 0.19 0.23 0.36 0.57 0.66 0.33 0.19 0.10
Cash ratio 0.27 0.12 0.36 0.42 0.48 0.34 0.15 0.10 0.09 0.08 0.10 0.21 0.19 0.23 0.36 0.57 0.66 0.33 0.19 0.10

IDEXX Laboratories Inc's current ratio, which measures the company's ability to meet short-term obligations with its current assets, has fluctuated over the years. The ratio has generally remained above 1, indicating a healthy liquidity position, with a slight decline in recent quarters.

The quick ratio, another liquidity metric that excludes inventory from current assets, follows a similar trend to the current ratio but tends to be lower. IDEXX Laboratories Inc's quick ratio has shown some volatility but has generally been below 1 in recent periods, suggesting a more conservative approach to liquidity management.

The cash ratio, which is the most stringent liquidity measure as it considers only cash and cash equivalents, has also exhibited a similar pattern to the quick ratio. IDEXX Laboratories Inc's cash ratio has been relatively low, indicating that the company relies more on other current assets to meet its short-term obligations.

Overall, IDEXX Laboratories Inc's liquidity ratios suggest that the company has maintained a reasonable ability to cover its short-term financial commitments, although some fluctuations and a generally conservative liquidity position are evident in the data provided.

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 91.89 94.31 92.66 96.02 94.36 99.92 102.53 103.24 98.50 94.99 88.83 81.15 74.06 72.98 70.24 70.02 67.46 72.30 79.01 72.63

IDEXX Laboratories Inc's cash conversion cycle has shown fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. The cash conversion cycle is a measure of the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales.

The trend for IDEXX Laboratories Inc's cash conversion cycle has been increasing overall, indicating a potential need for improvement in managing its cash flows, inventory levels, and receivables collection process. The company started with a relatively lower cash conversion cycle of 72.63 days on March 31, 2020, but it gradually increased to 91.89 days by December 31, 2024.

During this period, the company experienced peaks and troughs in the cash conversion cycle, with some quarters showing shorter cycles indicating better cash flow management, while other quarters showed longer cycles suggesting inefficiencies in the cash conversion process.

The increasing trend in the cash conversion cycle may indicate challenges in managing working capital efficiently, which could lead to increased carrying costs for inventory and higher liquidity risk. IDEXX Laboratories Inc may need to focus on optimizing its inventory levels, improving accounts receivable collection processes, and streamlining its accounts payable to shorten its cash conversion cycle and enhance overall liquidity and financial performance.