Manhattan Associates Inc (MANH)
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 | 1.26 | 1.25 | 1.17 | 1.20 | 1.31 | 1.18 | 1.09 | 1.15 | 1.32 | 1.29 | 1.38 | 1.47 | 1.64 | 1.66 | 1.60 | 1.60 | 1.70 | 1.56 | 1.37 | 1.23 |
| Quick ratio | 1.19 | 1.14 | 1.09 | 1.11 | 1.24 | 1.10 | 1.00 | 1.06 | 1.24 | 1.20 | 1.28 | 1.36 | 1.57 | 1.55 | 1.49 | 1.47 | 1.60 | 1.47 | 1.26 | 1.07 |
| Cash ratio | 0.67 | 0.59 | 0.56 | 0.56 | 0.74 | 0.55 | 0.46 | 0.56 | 0.71 | 0.69 | 0.79 | 0.84 | 1.06 | 1.06 | 0.97 | 0.95 | 1.04 | 0.90 | 0.67 | 0.43 |
The liquidity ratios for Manhattan Associates Inc indicate its ability to meet short-term financial obligations.
The current ratio has shown fluctuations over the years, ranging from a low of 1.09 on June 30, 2023, to a high of 1.70 on December 31, 2020. Typically, a current ratio above 1 is considered healthy as it signifies that the company has more current assets than current liabilities to cover its short-term debts. Manhattan Associates Inc's current ratio has generally been above 1, indicating a strong ability to pay off its short-term obligations.
The quick ratio, which is a more stringent measure of liquidity, also demonstrates Manhattan Associates Inc's ability to cover its short-term liabilities using its most liquid assets. Similar to the current ratio, the quick ratio has shown fluctuations over the years, with a low of 1.00 on June 30, 2023, and a high of 1.60 on December 31, 2020. The quick ratio has generally been above 1, suggesting that the company can meet its short-term obligations even when excluding inventory from its current assets.
The cash ratio, which is the most conservative measure of liquidity, provides insight into Manhattan Associates Inc's ability to cover its short-term liabilities using only its cash and cash equivalents. The cash ratio has fluctuated over the years, with a low of 0.46 on June 30, 2023, and a high of 1.06 on December 31, 2021. A cash ratio above 1 indicates that the company can pay off its current liabilities with its cash on hand, which is a positive sign of liquidity.
Overall, Manhattan Associates Inc's liquidity ratios suggest that the company has maintained a satisfactory level of liquidity, enabling it to meet its short-term financial obligations efficiently across the years analyzed in the data provided.
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 | 58.17 | 57.38 | 54.75 | 61.88 | 56.34 | 59.33 | 59.64 | 55.08 | 61.02 | 50.50 | 48.92 | 49.97 | 53.26 | 42.96 | 43.17 | 45.00 | 48.78 | 44.48 | 47.37 | 42.25 |
The cash conversion cycle of Manhattan Associates Inc has shown some fluctuations over the past few years. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, ranged from a low of 42.25 days in March 2020 to a high of 61.88 days in March 2024.
Analyzing the trend, we observe that there was a gradual increase in the cash conversion cycle from 2020 to 2024, with some volatility in between. This could indicate potential issues relating to the company's management of inventory, accounts receivable, and accounts payable.
Moreover, the highest point in the cash conversion cycle was observed in December 2022 at 61.02 days, suggesting possible inefficiencies in working capital management during that period. However, it decreased slightly in the subsequent quarters.
Overall, it is important for Manhattan Associates Inc to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of resources and maintain healthy cash flow levels. Any prolonged increase in the cash conversion cycle could potentially strain the company's liquidity position and impact its financial performance.