Liquidity Services Inc (LQDT)
Liquidity ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.28 | 1.21 | 1.14 | 1.29 | 1.21 | 1.12 | 1.05 | 1.08 | 1.05 | 0.95 | 0.85 | 0.96 | 1.21 | 1.27 | 1.17 | 1.31 | 1.27 | 1.18 | 1.16 | 1.23 |
| Quick ratio | 1.08 | 1.02 | 0.95 | 1.07 | 1.04 | 0.93 | 0.86 | 0.83 | 0.89 | 0.76 | 0.69 | 0.79 | 1.03 | 1.07 | 0.95 | 1.07 | 1.09 | 0.97 | 0.88 | 0.96 |
| Cash ratio | 1.00 | 0.95 | 0.88 | 1.00 | 0.98 | 0.88 | 0.82 | 0.76 | 0.79 | 0.70 | 0.64 | 0.73 | 0.97 | 1.02 | 0.89 | 1.01 | 1.02 | 0.91 | 0.79 | 0.86 |
Liquidity Services Inc's liquidity ratios have shown some fluctuations over the periods analyzed. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has generally been above 1, indicating a healthy liquidity position. However, there has been some variability, with the ratio fluctuating between 0.85 and 1.29.
In terms of the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, the company has also demonstrated a generally favorable position, remaining above 1 in most periods. This suggests that Liquidity Services Inc has a sufficient level of liquid assets to cover its short-term liabilities without relying on inventory.
The cash ratio, which focuses solely on the most liquid assets like cash and equivalents to cover short-term liabilities, has shown a similar trend of remaining above 1 for most periods. This indicates that the company has a strong ability to meet its immediate obligations using its cash resources.
Overall, Liquidity Services Inc's liquidity ratios show a generally stable and solid liquidity position, although some fluctuations are observed. Maintaining ratios above 1 for both the quick and cash ratios indicates a healthy level of liquidity that can support the company's ongoing operational needs and financial stability.
Additional liquidity measure
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -45.04 | -31.78 | -40.99 | -20.07 | -36.64 | -45.92 | -40.70 | -17.77 | -41.41 | -52.32 | -45.23 | -26.71 | -50.24 | -48.41 | -45.53 | -26.81 | -27.34 | -37.67 | -12.08 | 0.26 |
The cash conversion cycle of Liquidity Services Inc has varied over the last several quarters, indicating fluctuations in the company's ability to efficiently convert its resources into cash.
The cash conversion cycle, which represents the time it takes for the company to convert its investments in inventory and other inputs into cash receipts, has been predominantly negative in recent quarters. This suggests that Liquidity Services Inc has been able to generate cash from its operational activities relatively quickly.
However, there have been instances where the cash conversion cycle was positive, indicating that the company took longer to convert investments into cash. For example, in December 2022 and December 2020, the cash conversion cycle was positive. This may be due to factors such as changes in inventory management or delays in cash collection from customers.
Overall, the trend in the cash conversion cycle for Liquidity Services Inc shows that the company has been relatively efficient in managing its working capital and operating cycle, leading to faster cash generation. Monitoring this metric over time can provide insights into the company's liquidity and operational efficiency.