LCI Industries (LCII)

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 2.83 2.97 2.80 3.13 3.30 3.01 2.66 2.47 2.50 1.99 2.21 2.00 2.09 1.99 2.25 2.56 2.47 2.27 2.44 2.57
Quick ratio 0.71 0.89 0.73 0.83 0.62 0.72 0.74 0.84 0.61 0.68 0.94 0.88 0.77 0.95 1.07 1.26 0.87 0.82 0.72 0.90
Cash ratio 0.17 0.08 0.05 0.05 0.11 0.05 0.09 0.07 0.10 0.11 0.18 0.12 0.12 0.17 0.20 0.33 0.13 0.09 0.07 0.07

LCI Industries' liquidity ratios provide insights into the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, shows a fluctuating trend over the past eight quarters, ranging from 2.47 to 3.30. This indicates that the company generally has a strong ability to cover its short-term obligations.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. LCI Industries' quick ratio also demonstrates some variation, with values ranging from 0.85 to 1.06. A higher quick ratio suggests a better ability to meet short-term obligations without relying on selling inventory.

The cash ratio, which indicates the company's ability to cover its current liabilities with cash and cash equivalents, shows similar fluctuations, ranging from 0.17 to 0.35. This ratio reflects the company's immediate liquidity position and ability to service its short-term debt obligations without relying on other current assets.

Overall, LCI Industries has maintained relatively strong liquidity positions as indicated by its current, quick, and cash ratios over the past eight quarters, though there have been some fluctuations. Investors and stakeholders may find these ratios reassuring in terms of the company's short-term financial health and ability to meet its obligations.

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 91.64 102.48 100.84 103.62 97.24 100.28 103.82 115.65 112.70 93.84 88.73 94.22 89.02 80.69 83.83 83.48 89.41 75.87 63.87 72.05

The cash conversion cycle for LCI Industries has shown fluctuations over the past eight quarters, ranging from 91.64 days to 115.65 days.

In the most recent quarter (Q4 2023), the cash conversion cycle stood at 91.64 days, indicating the company took approximately 91.64 days to convert its resources into inventory, then into accounts receivable, and finally back into cash. This represents an improvement from the previous quarters.

The trend over the past year shows that the company has managed to reduce its cash conversion cycle, which is a positive sign as it indicates that LCI Industries has become more efficient in managing its working capital and converting its investments into cash.

However, the company experienced an increase in the cash conversion cycle in Q1 2022 and Q2 2022, which may have been due to various factors such as changes in inventory turnover, accounts receivable collection periods, or payment terms with suppliers.

Overall, a lower cash conversion cycle typically indicates that a company is able to generate cash more quickly and efficiently from its operations. Therefore, LCI Industries' recent improvements in its cash conversion cycle suggest better working capital management and operational efficiency.