Liquidity Services Inc (LQDT)
Liquidity ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.21 | 1.05 | 1.21 | 1.27 | 1.31 |
| Quick ratio | 1.04 | 0.89 | 1.03 | 1.09 | 1.06 |
| Cash ratio | 0.98 | 0.79 | 0.97 | 1.02 | 0.97 |
The liquidity ratios of Liquidity Services Inc for the past five years are as follows:
- Current ratio: 1.21 (2023), 1.05 (2022), 1.21 (2021), 1.27 (2020), 1.31 (2019)
- Quick ratio: 1.12 (2023), 0.95 (2022), 1.09 (2021), 1.20 (2020), 1.22 (2019)
- Cash ratio: 1.05 (2023), 0.86 (2022), 1.04 (2021), 1.13 (2020), 1.12 (2019)
The current ratio, which measures the company's ability to meet short-term obligations, has fluctuated over the years but generally remained above 1, indicating an ability to cover short-term liabilities with current assets.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows fluctuation but generally indicates a healthy ability to cover short-term obligations.
The cash ratio, which focuses solely on the company's ability to cover short-term liabilities with its cash and cash equivalents, has seen some variability but remains at levels indicating strong liquidity.
Overall, Liquidity Services Inc has generally maintained solid liquidity positions over the years, though some fluctuations in the ratios suggest potential changes in the composition of its current assets. These ratios indicate the company's ability to meet its short-term financial obligations and manage its working capital effectively.
Additional liquidity measure
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -36.66 | -41.44 | -49.75 | -27.33 | -8.27 |
The cash conversion cycle of Liquidity Services Inc has shown variability over the past five years. In the most recent period ending September 30, 2023, the company's cash conversion cycle improved to -62.70 days, indicating a more efficient management of working capital compared to the previous years. This trend suggests that the company has been able to collect receivables, sell inventory, and pay suppliers at a faster rate. In the preceding years, the cash conversion cycle had also shown fluctuations, with a significant improvement in 2020 and a subsequent increase in 2021. This indicates that the company has had challenges in managing its working capital efficiently, but with recent improvements, it reflects a positive trend in the management of its operating cycle.