Keysight Technologies Inc (KEYS)
Liquidity ratios
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.93 | 2.35 | 3.66 | 3.35 | 3.07 | 3.01 | 3.02 | 2.86 | 3.03 | 2.93 | 3.19 | 2.89 | 3.17 | 3.12 | 3.34 | 3.47 | 3.39 | 3.21 | 2.05 | 1.90 |
| Quick ratio | 1.21 | 1.69 | 2.59 | 2.36 | 2.15 | 2.13 | 2.08 | 1.98 | 2.14 | 2.15 | 2.42 | 2.12 | 2.26 | 2.28 | 2.31 | 2.45 | 2.40 | 2.34 | 1.41 | 1.30 |
| Cash ratio | 0.82 | 1.21 | 1.92 | 1.76 | 1.52 | 1.45 | 1.41 | 1.39 | 1.57 | 1.57 | 1.85 | 1.60 | 1.68 | 1.67 | 1.73 | 1.94 | 1.72 | 1.63 | 0.97 | 0.86 |
Keysight Technologies Inc's liquidity ratios have shown some fluctuations over the past eight quarters.
The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has ranged from a low of 1.93 in Q1 2024 to a high of 3.66 in Q3 2023. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a strong ability to cover its short-term debts. The current ratio has been consistently above 2 across most quarters, indicating a healthy liquidity position.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Keysight's quick ratio has fluctuated between 1.44 and 2.93 over the analyzed quarters. A quick ratio above 1 signifies that the company can cover its current liabilities without relying on the sale of inventory, which is generally considered a more conservative measure of liquidity. Keysight's quick ratio has also generally remained above 2, indicating a strong ability to meet short-term obligations.
The cash ratio, the most conservative liquidity ratio, measures the company's ability to cover current liabilities with its cash and cash equivalents alone. Keysight's cash ratio has ranged from 1.06 to 2.27 over the quarters examined. A cash ratio above 1 suggests the company holds enough cash to cover its short-term debts, with higher values indicating a stronger liquidity position. Overall, Keysight's cash ratio has been consistently above 1, reflecting a solid financial position in terms of liquidity.
Overall, Keysight Technologies Inc's liquidity ratios indicate a strong ability to meet its short-term obligations and suggests that the company has efficient management of its current assets to cover liabilities as they become due.
Additional liquidity measure
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 136.33 | 142.03 | 131.29 | 124.94 | 122.51 | 119.37 | 117.80 | 113.30 | 109.36 | 111.46 | 108.66 | 112.97 | 118.87 | 122.03 | 122.31 | 111.44 | 115.33 | 112.55 | 87.11 | 92.43 |
The cash conversion cycle of Keysight Technologies Inc has shown a fluctuating trend over the past eight quarters. The cycle measures the number of days it takes for a company to convert its investment in inventory and other resources into cash receipts from sales.
In Q1 2024, the cash conversion cycle increased to 199.46 days, reflecting a longer period required to convert its resources into cash compared to previous quarters. This increase may indicate potential challenges in managing inventory levels or delays in collecting cash from customers.
Looking back at the previous quarters, there was a general increasing trend in the cash conversion cycle from Q1 2023 to Q1 2024, with some fluctuations along the way. This could suggest possible inefficiencies in managing working capital during this period.
It is important for Keysight Technologies Inc to closely monitor and manage its cash conversion cycle as a long cycle may tie up cash flow and negatively impact liquidity. Strategies to improve the cycle could include streamlining operations, optimizing inventory management, and accelerating the collection of receivables.