Littelfuse Inc (LFUS)

Liquidity ratios

Dec 31, 2024 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
Current ratio 3.61 3.55 3.50 3.57 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
Quick ratio 1.67 1.43 1.35 1.39 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
Cash ratio 1.67 1.43 1.35 1.39 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

Littelfuse Inc's liquidity ratios have shown fluctuations over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has decreased from a high of 5.35 in June 2020 to 3.61 in March 2022 before fluctuating and ending at 3.61 in December 2024. This indicates that the company may have slightly lower liquidity towards the end of the period compared to the beginning.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also experienced a decline over the years. The ratio decreased from 3.12 in June 2020 to 1.35 in June 2024, suggesting a decreasing ability to cover immediate liabilities without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, followed a similar trend to the quick ratio. Starting at 3.12 in June 2020 and ending at 1.67 in December 2024, the cash ratio highlights the company's decreasing capacity to cover its current liabilities using only cash assets.

Overall, Littelfuse Inc's liquidity ratios have shown a downward trend over time, indicating a potential decrease in the company's short-term liquidity position. This may raise concerns about the company's ability to meet its financial obligations promptly in the future.


Additional liquidity measure

Dec 31, 2024 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
Cash conversion cycle days 106.90 115.15 112.25 112.72 117.17 117.01 125.86 135.59 132.65 132.57 129.48 125.42 124.37 107.07 103.81 104.81 99.48 97.90 102.09 88.77

The cash conversion cycle of Littelfuse Inc has shown some fluctuations over the period under review. From March 31, 2020, to December 31, 2024, the company's cash conversion cycle ranged from a low of 88.77 days to a high of 135.59 days.

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle can indicate inefficiencies in managing working capital, potentially tying up cash in inventory or receivables for extended periods.

Littelfuse Inc's cash conversion cycle increased in the latter part of the period, peaking at 135.59 days on March 31, 2023, before showing some improvement in subsequent quarters. This trend suggests a potential need for the company to optimize its inventory management, accounts receivable practices, and accounts payable terms to enhance cash flow efficiency.

Overall, monitoring and managing the cash conversion cycle is crucial for Littelfuse Inc to ensure optimal use of cash resources and improve overall liquidity and financial performance.