IDEXX Laboratories Inc (IDXX)

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	1.57	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	0.94	1.12	1.15	1.01
Quick ratio	0.98	0.83	0.70	0.55	0.45	0.43	0.47	0.65	0.70	0.85	0.97	1.20	1.26	1.02	0.82	0.47	0.52	0.63	0.64	0.58
Cash ratio	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	0.12	0.17	0.18	0.17

Idexx Laboratories, Inc.'s liquidity ratios have shown fluctuations over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally improved, with an upward trend from 0.89 in Q4 2022 to 1.57 in Q4 2023. This indicates that Idexx Laboratories has a more comfortable cushion of current assets to cover its current liabilities, reflecting improved liquidity.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also demonstrates a positive trend, increasing from 0.59 in Q4 2022 to 1.17 in Q4 2023. This suggests that the company has a stronger ability to meet its short-term obligations using its most liquid assets.

The cash ratio, which is the most conservative measure of liquidity as it considers only cash and cash equivalents to cover current liabilities, has shown fluctuations but generally increased from 0.23 in Q4 2022 to 0.67 in Q4 2023. This indicates an improvement in Idexx Laboratories' ability to settle its immediate liabilities using its most liquid assets.

Overall, the trends in Idexx Laboratories, Inc.'s liquidity ratios suggest an enhancement in the company's ability to meet short-term obligations as of Q4 2023 compared to previous quarters. This may imply stronger financial stability and an improved capacity to manage its short-term financial commitments.

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	114.21	119.26	124.68	122.50	117.66	110.39	102.58	95.89	86.11	94.33	91.06	93.60	90.81	99.34	103.12	93.97	87.01	91.32	92.98	89.95

The cash conversion cycle for Idexx Laboratories, Inc. has ranged from 95.89 days to 124.68 days over the past eight quarters. Generally, a lower cash conversion cycle indicates that a company is able to efficiently convert its investments in inventory and other resources into cash.

The trend for Idexx Laboratories, Inc. shows that the cash conversion cycle has been fluctuating over the quarters, reaching its peak in Q2 2023 at 124.68 days and its low in Q1 2022 at 95.89 days. This variability may suggest fluctuations in the company's management of inventory, accounts receivable, and accounts payable.

By closely monitoring and managing the components of the cash conversion cycle, such as inventory turnover, accounts receivable collection period, and accounts payable payment period, Idexx Laboratories, Inc. can strive to enhance its operational efficiency and optimize its working capital management.