Jacobs Solutions Inc. (J)

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	1.37	1.37	1.46	1.53	1.48	1.45	1.43	1.25	1.40	1.34	1.46	1.49	1.66	1.54	1.69	1.97	1.55	1.34	1.36	1.52
Quick ratio	1.32	1.31	1.41	1.48	1.43	1.40	1.38	1.21	1.36	1.28	1.42	1.37	1.61	1.49	1.53	1.84	1.49	1.28	1.15	1.07
Cash ratio	0.31	0.27	0.33	0.38	0.37	0.35	0.35	0.33	0.40	0.32	0.44	0.40	0.48	0.41	0.38	0.63	0.42	0.35	0.30	0.21

Jacobs Solutions Inc. has shown relatively stable current ratios over the past five quarters, with the latest ratio standing at 1.37 as of December 31, 2023. This indicates that the company has $1.37 in current assets for every dollar of current liabilities. The current ratio peaked at 1.97 on March 31, 2020, suggesting strong liquidity at that point.

In terms of quick ratios, Jacobs Solutions Inc. has also displayed consistency with the latest figure of 1.32 as of December 31, 2023. The quick ratio measures the company's ability to meet short-term obligations with its most liquid assets, excluding inventory. The quick ratio has varied over time, with the highest point at 1.84 on March 31, 2020.

Moreover, the cash ratio, which is a stricter measure of liquidity focusing solely on cash and cash equivalents compared to current liabilities, has generally increased for Jacobs Solutions Inc. The cash ratio was at 0.31 as of December 31, 2023, indicating the company had $0.31 in cash for every dollar of current liabilities. The ratio has shown an upward trend over the quarters, hinting at an improved ability to cover short-term obligations with cash on hand.

Overall, Jacobs Solutions Inc. maintains solid liquidity positions as indicated by the current, quick, and cash ratios, suggesting the company's ability to meet its short-term financial obligations comfortably.

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	55.02	52.85	55.09	58.30	58.37	58.14	56.53	58.16	54.52	54.91	58.87	62.80	61.85	57.31	50.75	53.60	49.27	42.94	50.07	82.63

The cash conversion cycle of Jacobs Solutions Inc. has fluctuated over the past few quarters, ranging from a low of 42.94 days to a high of 82.63 days. The trend indicates some inconsistency in the company's ability to efficiently convert its resources into cash.

It is worth noting that a shorter cash conversion cycle is generally favorable as it signifies that the company is able to collect payments from customers, sell inventory, and pay suppliers in a timely manner. Conversely, a longer cash conversion cycle may suggest inefficiencies in managing working capital, potentially leading to liquidity issues.

For Jacobs Solutions Inc., the cash conversion cycle has shown some improvement in recent quarters but still remains relatively high compared to some of the previous periods. Further analysis of the company's receivables turnover, inventory turnover, and payables turnover ratios may help identify areas for improvement in managing working capital efficiently to reduce the cash conversion cycle and enhance overall liquidity.