Korn Ferry (KFY)

The liquidity ratios for Korn Ferry over the past five years indicate the company's ability to meet its short-term obligations. The current ratio shows a generally positive trend, starting at 1.98 in 2020 and decreasing slightly to 1.79 in 2024. This suggests that Korn Ferry has sufficient current assets to cover its current liabilities, although there has been a slight decline over the years.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also demonstrates a similar trend. Starting at 1.81 in 2020, the ratio has decreased slightly to 1.63 in 2024. This indicates that Korn Ferry may face some challenges in meeting its short-term obligations without relying on inventory in the most recent year.

The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, also shows a decreasing trend. Starting at 1.17 in 2020, the ratio has decreased to 1.05 in 2024. Although the cash ratio is the lowest of the three liquidity ratios, it still indicates that Korn Ferry has a reasonable level of cash to cover its immediate liabilities.

Overall, while Korn Ferry's liquidity ratios have shown a slight decline over the past five years, the company generally maintains a solid liquidity position, with current assets sufficient to cover current liabilities. However, the decreasing trend in these ratios over time suggests that Korn Ferry may need to monitor its liquidity position closely to ensure it remains strong in the future.

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Additional liquidity measure

The cash conversion cycle of Korn Ferry has shown a fluctuating trend over the past five years.

In April 2024, the cash conversion cycle improved to 62.23 days compared to the previous year when it was 71.84 days. This indicates that Korn Ferry was able to convert its investments in inventory and accounts receivable into cash more efficiently during the most recent period.

Looking back over the five-year period, there was a notable increase in the cash conversion cycle from 68.95 days in April 2020 to 86.59 days in April 2021. However, the company managed to reduce this cycle to 62.23 days by April 2024, showcasing efforts to improve their working capital management.

Overall, Korn Ferry's cash conversion cycle has fluctuated but showed signs of improvement in the most recent period, suggesting enhanced efficiency in converting its investments into cash. This indicates a positive trend in the company's liquidity management over the years.