Dorian LPG Ltd (LPG)
Liquidity ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.62 | 3.31 | 2.63 | 2.50 | 2.50 | 2.72 | 2.93 | 3.21 | 3.25 | 2.29 | 1.52 | 2.05 | 1.87 | 2.81 | 2.14 | 2.49 | 1.64 | 1.67 | 1.52 | 1.16 |
| Quick ratio | 3.41 | 3.19 | 2.46 | 2.36 | 2.38 | 2.58 | 2.77 | 3.04 | 3.11 | 1.72 | 1.33 | 1.39 | 1.65 | 2.70 | 2.05 | 2.38 | 1.54 | 1.57 | 1.41 | 1.09 |
| Cash ratio | 2.89 | 2.08 | 1.82 | 1.61 | 1.57 | 1.55 | 1.99 | 2.17 | 2.50 | 1.22 | 1.02 | 0.89 | 0.97 | 1.72 | 1.48 | 1.82 | 0.74 | 0.75 | 0.57 | 0.27 |
Based on the provided data, Dorian LPG Ltd's liquidity ratios have shown a generally positive trend over the periods indicated. The current ratio, which measures the firm's ability to cover its short-term obligations with its current assets, has been consistently above 2.0 in recent quarters, indicating a healthy liquidity position.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also remained strong, suggesting the company's ability to meet its short-term obligations even if inventory cannot be immediately converted to cash.
Furthermore, the cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has shown an increasing trend, indicating an improvement in the firm's ability to meet its short-term obligations using readily available cash resources.
Overall, the liquidity ratios suggest that Dorian LPG Ltd has maintained a strong liquidity position in recent quarters, which is important for meeting short-term obligations and unforeseen financial challenges.
Additional liquidity measure
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 12.19 | 56.02 | 24.42 | 29.84 | 41.77 | 66.73 | 44.02 | 58.43 | 51.80 | 35.64 | 9.28 | 10.23 | 38.82 | 56.00 | 29.23 | 16.26 | 29.22 | 49.08 | 75.99 | 103.87 |
Dorian LPG Ltd's cash conversion cycle has shown fluctuations over the past 20 quarters. 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.
The trend in Dorian LPG Ltd's cash conversion cycle shows that the company's ability to efficiently manage its working capital has improved in recent quarters. With a notable decrease from 103.87 days in September 2019 to 12.19 days in March 2024, there has been a significant improvement in the company's cash conversion efficiency.
The company's cash conversion cycle was at its highest level in the quarter ending September 2019, indicating potential challenges in managing working capital efficiently at that time. However, since then, there has been a consistent trend of decreasing days in the cash conversion cycle, highlighting the company's efforts to improve its working capital management.
Overall, the decreasing trend in Dorian LPG Ltd's cash conversion cycle indicates an improvement in the company's ability to generate cash from its operating cycle more efficiently. This trend is a positive signal for the company's financial health and operational effectiveness.