Kulicke and Soffa Industries Inc (KLIC)
Liquidity ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 5.41 | 6.10 | 6.34 | 6.50 | 6.55 | 6.01 | 6.07 | 5.75 | 5.36 | 5.06 | 4.81 | 4.26 | 3.84 | 3.83 | 3.99 | 4.73 | 5.45 | 5.88 | 3.70 | 4.58 |
| Quick ratio | 4.20 | 4.83 | 5.01 | 4.93 | 5.06 | 4.62 | 3.75 | 4.51 | 4.36 | 2.72 | 2.51 | 2.35 | 3.30 | 2.06 | 2.17 | 2.87 | 3.36 | 3.61 | 2.44 | 3.05 |
| Cash ratio | 3.14 | 3.63 | 3.83 | 3.91 | 4.18 | 3.62 | 3.75 | 3.60 | 3.12 | 2.72 | 2.51 | 2.35 | 2.10 | 2.06 | 2.17 | 2.87 | 3.36 | 3.61 | 2.44 | 3.05 |
Kulicke and Soffa Industries Inc has shown a strong liquidity position over the past few quarters based on its current ratio, which has consistently been above 5. This indicates that the company has more than enough current assets to cover its current liabilities. The current ratio has been steadily increasing, reaching a high of 6.55 in the most recent quarter.
The quick ratio, which excludes inventory from current assets, also reflects a healthy liquidity position for the company. The quick ratio has consistently been above 2 in the recent quarters, indicating that Kulicke and Soffa Industries Inc has a strong ability to meet its short-term obligations without relying on selling inventory.
Furthermore, the cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also been relatively high and stable over the past few quarters. This indicates that the company has a solid ability to cover its current liabilities using only cash on hand.
Overall, the liquidity ratios of Kulicke and Soffa Industries Inc reflect a strong financial position and the company appears to have ample liquidity to meet its short-term obligations.
Additional liquidity measure
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 199.41 | 200.57 | 200.24 | 258.77 | 237.72 | 235.81 | 120.81 | 152.96 | 131.95 | 49.78 | 45.14 | 19.40 | 106.94 | 5.04 | 11.62 | 32.79 | 60.74 | 75.79 | 68.14 | 66.29 |
The cash conversion cycle of Kulicke and Soffa Industries Inc has shown fluctuating trends over the reported periods. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales while considering the time taken to pay off its liabilities.
The data indicates that the cash conversion cycle has varied significantly, ranging from a low of 5.04 days to a high of 258.77 days. Shorter cash conversion cycles imply that the company is efficient in managing its working capital and swiftly converting its investments into cash. On the other hand, longer cycles suggest potential inefficiencies in the company's operations and liquidity management.
In recent periods, particularly in September 2024, the cash conversion cycle increased to 199.41 days, indicating a slowdown in the company's ability to convert investments into cash. This could be a result of increased inventory levels, longer accounts receivable collection periods, or delays in paying off liabilities.
Conversely, in March 2022, the cash conversion cycle dropped to 19.40 days, reflecting a period of strong efficiency in working capital management. During this time, the company potentially managed its inventory, receivables, and payables effectively, leading to a swift cash conversion process.
Overall, monitoring the cash conversion cycle is crucial for assessing a company's operational efficiency, financial health, and liquidity management. It provides insights into how quickly the company can generate cash from its operational activities and highlights areas that may require improvements to streamline working capital processes.