Keysight Technologies Inc (KEYS)
Liquidity ratios
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.98 | 2.05 | 1.99 | 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 |
| Quick ratio | 1.98 | 1.25 | 1.24 | 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 |
| Cash ratio | 1.26 | 0.84 | 0.83 | 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 |
Keysight Technologies Inc's liquidity ratios have exhibited fluctuations over the past several periods. The current ratio, a measure of short-term liquidity, has generally been above 2, indicating the company's ability to cover its short-term obligations with its current assets. However, there was a noticeable decline in the current ratio from July 2024 to January 2021, suggesting potential challenges in meeting short-term obligations during that period.
The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also followed a similar trend as the current ratio. It remained above 1 for most periods but experienced a decline from July 2024 to January 2021, indicating a potential decrease in the company's ability to cover immediate liabilities with its most liquid assets.
The cash ratio, representing the most conservative measure of liquidity by focusing solely on cash and cash equivalents to cover current liabilities, also showed a decreasing trend from July 2024 to January 2021. This suggests a reduction in the company's ability to meet short-term obligations using only its cash reserves.
Overall, while Keysight Technologies Inc generally maintained a healthy liquidity position with current, quick, and cash ratios above key benchmark thresholds, the declining trend in these ratios from July 2024 to January 2021 may raise concerns about the company's short-term liquidity management during that period. Further analysis of the company's cash management practices and working capital efficiency could help provide insights into these fluctuations.
Additional liquidity measure
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 150.23 | 139.12 | 138.66 | 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 |
The cash conversion cycle of Keysight Technologies Inc has shown fluctuations over the past few quarters, ranging from 109.36 days to 150.23 days. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash receipts from customers.
Overall, the trend indicates that the company has been efficient in managing its working capital and converting its assets into cash, as the cycle has generally been decreasing over the periods. This suggests that the company has been improving its inventory management, accounts receivable collection, and accounts payable payment processes.
However, the recent increase in the cash conversion cycle from 117.80 days to 150.23 days is a point of concern, as it indicates a potential slowdown in cash inflows relative to cash outflows. This may require further investigation to understand the reasons behind this trend and take necessary actions to optimize working capital efficiency.
In conclusion, while Keysight Technologies Inc has shown overall improvement in managing its cash conversion cycle, the recent increase in the cycle warrants attention to ensure continued efficiency in working capital management.