Manhattan Associates Inc (MANH)

Manhattan Associates, Inc.'s liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to cover its current liabilities with its current assets, has fluctuated over the past five years but generally remained above 1, ranging from 1.28 to 1.70. This suggests that Manhattan Associates has been able to meet its short-term obligations relatively comfortably.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows a similar trend to the current ratio, ranging from 1.28 to 1.70. This indicates that Manhattan Associates has a strong ability to cover its short-term obligations even without relying on inventory.

On the other hand, the cash ratio, which specifically measures the company's ability to cover its current liabilities with its cash and cash equivalents, has varied more significantly over the years, ranging from 0.71 to 1.13. The decline in the cash ratio from 2021 to 2023 may indicate a decrease in the company's ability to cover its short-term liabilities with cash alone.

Overall, Manhattan Associates, Inc. has maintained relatively healthy liquidity ratios, as indicated by consistently favorable current and quick ratios above 1. However, the decreasing trend in the cash ratio warrants further attention to ensure that the company can continue to meet its short-term obligations effectively with its cash resources.

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Additional liquidity measure

The cash conversion cycle of Manhattan Associates, Inc. has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle stood at 50.97 days, showing a slight improvement from the previous year's 53.47 days. This indicates that Manhattan Associates has reduced the time it takes to convert its investments in inventory and other resources into cash.

Comparing the most recent data to that of 2019, there has been a noticeable increase in the cash conversion cycle from 34.07 days to 50.97 days in 2023. This suggests that the company may be facing challenges in efficiently managing its working capital and converting its assets into cash within a reasonable timeframe.

Overall, Manhattan Associates, Inc. has demonstrated varying efficiency in managing its cash conversion cycle in recent years. The company may need to focus on optimizing its inventory management, accounts receivable collection, and accounts payable processes to enhance its working capital efficiency and overall financial performance moving forward.