Kelly Services A Inc (KELYA)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.59 | 1.52 | 1.45 | 1.67 | 1.59 |
| Quick ratio | 1.26 | 1.46 | 1.64 | 1.79 | 1.68 |
| Cash ratio | 0.12 | 0.14 | 0.34 | 0.42 | 0.23 |
The liquidity ratios of Kelly Services, Inc. have shown some fluctuations over the past five years.
The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has been relatively stable, ranging from 1.45 to 1.67. The current ratio for the most recent year, 2023, stands at 1.59, indicating that the company has $1.59 in current assets for every $1 in current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown consistency over the years, except for a slight increase in 2023 to 1.52. This ratio suggests that Kelly Services, Inc. can cover its short-term obligations more comfortably without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has been fluctuating more significantly. In 2023, the cash ratio stands at 0.17, indicating that the company has $0.17 of cash and equivalents for every $1 of current liabilities. This ratio has decreased compared to the previous year.
Overall, Kelly Services, Inc. appears to have maintained a strong liquidity position over the years, as indicated by the current and quick ratios. However, the decreasing trend in the cash ratio may be a point of concern, suggesting a lower level of immediate liquidity available in the most recent year.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 109.54 | 110.01 | 105.89 | 102.47 | 89.15 |
The cash conversion cycle for Kelly Services, Inc. has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 87.60 days from 109.65 days in 2022, indicating an improvement in the management of cash flows. This trend suggests that the company is managing its inventory, accounts payable, and accounts receivable more effectively.
Comparing the data further, we can see that the cash conversion cycle was relatively stable around the 100-day mark in the years 2022 and 2021. However, there was a notable increase from 87.39 days in 2019 to 102.26 days in 2021, which may indicate potential inefficiencies in managing working capital during that period.
Overall, it is essential for Kelly Services, Inc. to continue monitoring its cash conversion cycle closely to ensure efficient cash management and optimize its working capital efficiency.