Jacobs Solutions Inc. (J)

Liquidity ratios

	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	Dec 31, 2019
Current ratio	1.20	1.14	1.17	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
Quick ratio	1.16	1.11	1.12	1.32	0.94	1.41	1.48	1.43	1.40	1.38	1.21	1.36	1.28	1.42	1.37	1.61	1.49	1.65	1.91	1.49
Cash ratio	0.46	0.27	0.24	0.31	0.23	0.33	0.38	0.37	0.35	0.35	0.33	0.40	0.32	0.44	0.40	0.48	0.41	0.49	0.70	0.42

Based on the provided data, Jacobs Solutions Inc.'s liquidity ratios have displayed some fluctuations over the past few periods.

The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has shown some variability but generally remained above 1.0 over the analyzed periods. This indicates that the company has maintained an adequate level of current assets to meet its short-term liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has exhibited a similar trend of fluctuation but has also generally remained above 1.0. This suggests that the company has a sufficient level of highly liquid assets to cover immediate liabilities without relying on selling inventory.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and equivalents, has also varied over the periods but has generally stayed above 0.2. This indicates that Jacobs Solutions Inc. has had a reasonable amount of cash on hand to meet its immediate obligations.

Overall, while there have been some fluctuations in the liquidity ratios of Jacobs Solutions Inc., the company has managed to maintain levels that generally reflect a healthy liquidity position, providing a buffer against short-term financial challenges.

Additional liquidity measure

		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	Dec 31, 2019
Cash conversion cycle	days	32.20	52.83	55.42	55.02	32.78	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

The cash conversion cycle of Jacobs Solutions Inc. has shown fluctuations over the periods analyzed. The company's cash conversion cycle is a measure of how quickly the company can convert its investments in inventory and other resources into cash flow from sales. A shorter cash conversion cycle indicates a more efficient use of working capital.

Looking at the data provided, we can observe that Jacobs Solutions Inc.'s cash conversion cycle ranged from 49.27 days to 62.80 days over the past few quarters. There was a peak in the cycle at 62.80 days in Mar 31, 2021, and a trough at 49.27 days in Dec 31, 2019.

The longer cash conversion cycles indicate that the company takes more time to sell its inventory, collect receivables, and pay its suppliers. This may suggest inefficiencies in managing working capital and could lead to potential liquidity issues if not managed properly.

Analyzing trends in the cash conversion cycle can provide insights into the company's operational efficiency and liquidity management. Jacobs Solutions Inc. may want to focus on optimizing inventory levels, improving accounts receivable collection processes, and negotiating better payment terms with suppliers to shorten the cash conversion cycle and enhance overall cash flow management.