Itron Inc (ITRI)
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 | 3.44 | 3.36 | 3.16 | 1.90 | 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 |
| Quick ratio | 2.65 | 2.53 | 2.31 | 1.11 | 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 |
| Cash ratio | 1.99 | 1.88 | 1.72 | 0.52 | 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 |
Itron Inc's liquidity ratios show the company's ability to meet short-term obligations. The current ratio, which compares current assets to current liabilities, has fluctuated over the years but generally remained above 1, indicating the company has enough assets to cover its short-term debts. However, there was a notable decrease at the end of 2021 and into 2022, which might indicate potential liquidity challenges during that period.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also showed a similar trend with some fluctuations but mostly remained above 1. This suggests that the company has a good ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which only considers cash and cash equivalents relative to current liabilities, displayed a declining trend in recent years, which might indicate a decrease in the company's ability to cover its short-term debts solely with cash resources.
Overall, while Itron Inc's liquidity ratios have shown some fluctuations, the company generally maintained a reasonable level of liquidity to meet its short-term obligations. However, the declining trends in certain periods should be monitored for any potential liquidity challenges in the future.
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 | 75.79 | 74.90 | 69.76 | 66.92 | 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 |
Itron Inc's cash conversion cycle has shown fluctuations over the reviewed periods. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 2020 to December 2024, the company's cash conversion cycle ranged from 48.08 days to 75.79 days. A lower number of days indicates a more efficient cycle, where the company is able to quickly convert its resources into cash. On the other hand, a higher number of days suggests inefficiencies in the conversion process.
In the most recent period of December 2024, the cash conversion cycle stood at 75.79 days, which is on the higher side. This extended cycle may be a concern as it could tie up working capital for a longer duration before generating cash inflows from sales.
It would be advisable for Itron Inc to closely monitor and manage its inventory, accounts receivable, and accounts payable to optimize its cash conversion cycle. Reducing the cycle time can lead to improved liquidity, better cash flow management, and enhanced overall financial performance.