IPG Photonics Corporation (IPGP)

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 8.91 8.74 8.43 7.68 7.23 7.16 6.87 8.16 7.49 7.94 8.95 10.25 10.01 10.09 9.99 9.59 9.88 9.08 8.38 8.54
Quick ratio 6.62 6.35 6.04 5.42 5.21 5.00 4.86 6.13 5.79 6.24 7.08 8.23 8.04 7.95 7.76 7.40 7.61 6.73 6.15 6.26
Cash ratio 5.48 5.16 4.80 4.29 4.29 4.17 3.91 5.06 4.83 5.19 5.85 6.73 6.48 6.46 6.40 6.12 6.16 5.25 4.69 4.91

IPG Photonics Corp's liquidity ratios have shown consistent improvement over the quarters, indicating strong liquidity positions. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has been steadily increasing from 7.23 in Q4 2022 to 8.91 in Q4 2023. This indicates that IPG Photonics Corp has sufficient current assets to meet its short-term obligations.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a positive trend, increasing from 5.38 in Q4 2022 to 6.80 in Q4 2023. This suggests that the company can meet its short-term obligations without relying on selling inventory.

Furthermore, the cash ratio, which represents the ability to cover short-term liabilities with cash and cash equivalents, has also improved consistently over the quarters. The ratio has increased from 4.61 in Q4 2022 to 5.78 in Q4 2023, indicating a stronger ability to meet immediate financial obligations with available cash.

Overall, IPG Photonics Corp's liquidity ratios point towards a robust financial position, with ample liquidity to support its operations and meet short-term obligations.


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 277.63 267.93 266.90 267.40 257.80 289.52 302.85 278.24 268.06 263.04 261.28 260.37 288.72 279.50 260.61 245.10 259.13 287.60 296.58 279.02

The cash conversion cycle of IPG Photonics Corp has shown fluctuations over the past eight quarters. The company's cash conversion cycle ranged from 247.34 days to 289.89 days during this period.

In general, a shorter cash conversion cycle indicates that the company is able to convert its investments in raw materials and production efficiently into cash receipts from sales. It suggests that the company is managing its inventory levels well and collecting payments from customers promptly.

On the other hand, a longer cash conversion cycle can signal potential inefficiencies in managing inventory, accounts receivable, and accounts payable. This may result in increased working capital requirements and potential liquidity challenges for the company.

It is important for IPG Photonics Corp to monitor and manage its cash conversion cycle effectively to optimize its working capital and cash flow positions. By improving operational efficiency and streamlining its processes, the company can potentially reduce its cash conversion cycle, leading to better financial performance and liquidity management.