Leidos Holdings Inc (LDOS)
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 | 1.34 | 1.31 | 1.25 | 1.16 | 0.92 | 0.93 | 0.90 | 1.00 | 1.12 | 1.07 | 1.05 | 1.12 | 1.15 | 0.94 | 0.89 | 0.67 | 1.21 | 1.16 | 1.30 | 1.23 |
| Quick ratio | 1.07 | 1.05 | 0.98 | 0.92 | 0.73 | 0.75 | 0.71 | 0.78 | 0.90 | 0.86 | 0.84 | 0.87 | 0.92 | 0.70 | 0.69 | 0.52 | 1.03 | 0.95 | 1.11 | 1.05 |
| Cash ratio | 0.26 | 0.25 | 0.12 | 0.12 | 0.13 | 0.19 | 0.09 | 0.09 | 0.23 | 0.18 | 0.11 | 0.13 | 0.18 | 0.15 | 0.17 | 0.10 | 0.29 | 0.25 | 0.29 | 0.23 |
Based on the liquidity ratios of Leidos Holdings Inc over the past five quarters, we can observe the following trends:
1. Current Ratio:
- The current ratio has been fluctuating over the quarters, ranging from 0.67 to 1.34.
- While the ratio has shown improvement in recent quarters, it has not been consistently stable.
- The current ratio as of Dec 31, 2023, stands at 1.34, indicating that the company has $1.34 in current assets for every $1 in current liabilities.
2. Quick Ratio:
- The quick ratio has also been volatile, ranging from 0.52 to 1.07.
- Similar to the current ratio, the quick ratio has shown some improvement in the latest quarters.
- The quick ratio as of Dec 31, 2023, is 1.07, indicating a slight improvement in the company's ability to cover its immediate liabilities with its most liquid assets.
3. Cash Ratio:
- The cash ratio has shown significant volatility, with values ranging from 0.09 to 0.29.
- The company's ability to cover its short-term liabilities with cash and cash equivalents has fluctuated widely over the quarters.
- As of Dec 31, 2023, the cash ratio is 0.26, suggesting that Leidos Holdings Inc has $0.26 in cash for every $1 in current liabilities.
Overall, while there have been improvements in the liquidity ratios of Leidos Holdings Inc in recent quarters, there is still some volatility and room for enhancement in maintaining a more stable and favorable liquidity position. It is important for the company to continue monitoring and managing its liquidity effectively to ensure it can meet its short-term obligations efficiently.
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 | 45.64 | 67.35 | 69.82 | 71.68 | 46.36 | 67.36 | 71.60 | 72.04 | 45.15 | 70.38 | 70.61 | 70.93 | 47.70 | 67.27 | 67.06 | 57.38 | 37.17 | 60.06 | 63.87 | 67.16 |
The cash conversion cycle of Leidos Holdings Inc has shown variability over the past five years, ranging from 37.17 days to 72.04 days. This cycle measures the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
On average, Leidos Holdings Inc takes around 60 days to complete a full cash conversion cycle. A shorter cash conversion cycle indicates that the company is able to generate cash quickly from its operations, which is generally a positive sign as it signifies efficient management of working capital.
During the periods when Leidos Holdings Inc exhibited shorter cash conversion cycles, such as in December 2019 and September 2020, the company was likely able to manage its inventory, accounts receivable, and accounts payable effectively, leading to a faster conversion of investments into cash.
Conversely, during periods of longer cash conversion cycles, such as in March 2022 and September 2023, the company may have faced challenges in managing working capital efficiently, possibly due to slower inventory turnover or delayed collection of accounts receivable.
Overall, analyzing the fluctuations in Leidos Holdings Inc's cash conversion cycle can provide insights into its working capital management and operational efficiency over time.