Littelfuse Inc (LFUS)
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 | 3.75 | 3.03 | 2.91 | 2.70 | 2.64 | 3.19 | 4.31 | 3.61 | 2.92 | 3.41 | 3.46 | 3.65 | 4.42 | 4.90 | 5.35 | 5.25 | 4.45 | 4.05 | 3.90 | 3.82 |
| Quick ratio | 2.24 | 1.84 | 1.66 | 0.82 | 1.52 | 1.06 | 2.03 | 1.26 | 1.73 | 2.41 | 2.44 | 2.60 | 3.34 | 3.72 | 4.01 | 3.98 | 3.25 | 2.82 | 2.70 | 2.65 |
| Cash ratio | 1.48 | 1.16 | 0.97 | 0.82 | 0.98 | 1.06 | 2.03 | 1.26 | 1.10 | 1.64 | 1.61 | 1.75 | 2.49 | 2.74 | 3.12 | 2.98 | 2.35 | 1.91 | 1.78 | 1.77 |
Littelfuse Inc's liquidity ratios provide insight into the company's ability to meet its short-term obligations. The current ratio has shown a general increasing trend over the past five quarters, indicating an improving ability to cover its short-term liabilities with current assets. It peaked at 5.35 in June 2020, but has since stabilized around 3 to 4.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also displays an upward trend, although with more fluctuations compared to the current ratio. The quick ratio ranged from 0.82 to 4.01 over the same period, with the highest value recorded in March 2020.
The cash ratio, which is the most conservative liquidity metric as it only considers cash and cash equivalents, has generally shown an increasing pattern, signaling enhanced ability to cover short-term obligations with readily available cash. The cash ratio ranged from 0.82 to 3.12 during the same time frame, with the peak seen in June 2020.
Overall, Littelfuse Inc's liquidity ratios demonstrate a healthy liquidity position, with an improving ability to meet short-term obligations using both current assets and cash. This suggests the company is managing its working capital effectively and has sufficient liquidity to navigate through uncertain economic conditions.
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 | 106.50 | 112.17 | 119.57 | 73.53 | 109.98 | 61.91 | 57.37 | 55.08 | 99.26 | 103.93 | 104.80 | 107.28 | 103.76 | 110.25 | 105.12 | 100.91 | 95.59 | 104.18 | 103.00 | 97.81 |
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales. Littelfuse Inc's cash conversion cycle has shown fluctuations over the past five years, ranging from a low of 55.08 days to a high of 119.57 days.
In the most recent quarter, ending December 31, 2023, the cash conversion cycle was 106.50 days, indicating that it took the company approximately 106 days to convert its investments in inventory and accounts receivable into cash from sales. This suggests that Littelfuse Inc faces challenges in efficiently managing its working capital and converting its assets into cash.
Comparing this to the previous year's quarters, there appears to be a general trend of increasing cash conversion cycle, which could indicate potential issues with inventory management, accounts receivable collection, or cash flow efficiency within the company.
Overall, Littelfuse Inc should focus on optimizing its cash conversion cycle to improve its liquidity and operational efficiency, potentially through better inventory management, faster collection of receivables, and streamlining its cash conversion processes.