Itron Inc (ITRI)
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 | 1.95 | 1.82 | 1.73 | 1.68 | 1.66 | 1.61 | 1.64 | 1.58 | 1.50 | 1.62 | 1.64 | 1.39 | 1.69 | 2.30 | 2.25 | 2.08 | 1.49 | 1.41 | 1.44 | 1.40 |
| Quick ratio | 1.13 | 1.03 | 0.99 | 0.93 | 0.97 | 0.96 | 1.02 | 1.01 | 0.92 | 1.03 | 1.06 | 1.03 | 1.05 | 1.66 | 1.59 | 1.53 | 0.93 | 0.89 | 0.90 | 0.88 |
| Cash ratio | 0.56 | 0.46 | 0.42 | 0.37 | 0.41 | 0.43 | 0.45 | 0.41 | 0.32 | 0.38 | 0.40 | 0.63 | 0.38 | 1.00 | 0.91 | 0.83 | 0.22 | 0.21 | 0.20 | 0.17 |
The liquidity ratios of Itron Inc. have shown consistent trends over the past eight quarters.
The current ratio has generally improved from 1.58 in Q1 2022 to 1.95 in Q4 2023. This indicates that the company's current assets are sufficient to cover its current liabilities, with a higher ratio suggesting improved short-term financial health.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also displayed an increasing trend from 1.19 in Q1 2023 to 1.43 in Q4 2023. This indicates that Itron Inc. has a stronger ability to meet short-term obligations without relying on inventory sales.
The cash ratio has shown fluctuations but an overall increasing trend, rising from 0.63 in Q1 2022 to 0.86 in Q4 2023. This indicates that Itron Inc. is holding a higher proportion of cash and cash equivalents compared to its current liabilities, which can be seen as a positive sign of liquidity.
In summary, the liquidity ratios of Itron Inc. have been improving over the past quarters, with the current ratio, quick ratio, and cash ratio all indicating a strengthened ability to meet short-term obligations and suggesting a healthier financial position. These trends are indicative of effective liquidity management by the company.
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 | 67.88 | 67.09 | 67.59 | 66.02 | 55.30 | 48.08 | 52.64 | 52.19 | 51.23 | 56.31 | 61.26 | 62.72 | 57.10 | 58.11 | 62.12 | 51.29 | 53.22 | 56.19 | 55.46 | 54.34 |
The cash conversion cycle of Itron Inc. has shown fluctuations over the past eight quarters, reflecting the efficiency of the company's working capital management. In Q4 2023, the cash conversion cycle was 72.06 days, which is higher compared to the previous quarters, indicating a slower conversion of cash from operational activities.
Further analysis reveals that the cash conversion cycle has been gradually increasing since Q1 2022 when it was at 48.71 days. This increase suggests that Itron Inc. may be facing challenges in managing its accounts receivable, inventory, and accounts payable effectively.
The longest cash conversion cycle during this period was found in Q4 2022 with 54.58 days, which implies that the company took longer to convert its investments in inventory and accounts receivable into cash flow from sales.
Overall, a rising trend in the cash conversion cycle may indicate inefficiencies in the company's operations and potential cash flow concerns. Management should focus on streamlining working capital processes to improve cash flow and operational effectiveness.