Kelly Services A Inc (KELYA)
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 | 1.59 | 1.55 | 1.54 | 1.55 | 1.52 | 1.51 | 1.50 | 1.53 | 1.45 | 1.43 | 1.43 | 1.66 | 1.67 | 1.80 | 1.74 | 1.62 | 1.59 | 1.52 | 1.50 | 1.44 |
| Quick ratio | 1.26 | 1.47 | 1.47 | 0.11 | 1.46 | 0.11 | 0.12 | 0.19 | 1.64 | 0.04 | 0.06 | 0.25 | 0.42 | 0.49 | 0.43 | 0.17 | 0.23 | 0.22 | 0.27 | 0.18 |
| Cash ratio | 0.12 | 0.11 | 0.12 | 0.11 | 0.14 | 0.11 | 0.12 | 0.19 | 0.34 | 0.04 | 0.06 | 0.25 | 0.42 | 0.49 | 0.43 | 0.17 | 0.23 | 0.22 | 0.27 | 0.18 |
The liquidity ratios of Kelly Services, Inc. indicate the company's ability to meet its short-term obligations and manage its current liabilities effectively.
The current ratio has shown a steady improvement over the quarters, increasing from 1.52 in Q4 2022 to 1.59 in Q4 2023. This suggests that the company has been able to increase its current assets relative to its current liabilities, providing a larger cushion to cover short-term obligations.
The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its most liquid assets. It remained relatively stable over the quarters, indicating that Kelly Services has maintained a consistent level of liquidity, with a slight decrease in Q4 2023 compared to the previous quarters.
The cash ratio, which is the most conservative liquidity measure, reflects the company's ability to cover its current liabilities with cash and cash equivalents. The trend for the cash ratio fluctuated over the quarters, with a decrease from 0.25 in Q1 2022 to 0.17 in Q4 2023. This indicates that Kelly Services may have reduced its cash holdings or increased its current liabilities during this period.
Overall, the liquidity ratios of Kelly Services, Inc. suggest that the company has maintained a strong liquidity position, with sufficient assets to cover its short-term obligations. However, closer monitoring of the cash ratio may be warranted to ensure the company's ability to meet its liabilities solely with cash reserves.
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 | 116.95 | 131.21 | 132.84 | 0.00 | 379.85 | 0.00 | 0.00 | 0.00 | 105.88 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.76 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of Kelly Services, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company had a cash conversion cycle of 87.60 days, which improved compared to the previous quarter when it was 104.75 days. This indicates that the company was able to convert its investments in inventory and accounts receivable into cash more efficiently in the most recent quarter.
However, looking at a longer trend, the cash conversion cycle in the past year has been relatively stable, ranging between 106 and 111 days. This suggests that the company generally takes around three to four months to convert its investments in inventory and accounts receivable into cash.
Overall, a lower cash conversion cycle is favorable as it indicates that the company is managing its working capital more effectively and generating cash more quickly from its operations. Kelly Services, Inc. should continue to monitor its cash conversion cycle to ensure efficient management of its working capital and liquidity.