Manhattan Associates Inc (MANH)
Liquidity ratios
| 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 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.28 | 1.32 | 1.42 | 1.40 |
| Quick ratio | 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 | 1.17 | 1.22 | 1.30 | 1.28 |
| Cash ratio | 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 | 0.61 | 0.62 | 0.71 | 0.63 |
The liquidity ratios of Manhattan Associates, Inc. have been relatively stable over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has fluctuated between 1.09 and 1.47. This indicates that the company generally has more than enough current assets to meet its short-term liabilities.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, shows a similar trend to the current ratio, ranging from 1.09 to 1.47. This suggests that the company has a satisfactory ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which specifically measures the company's ability to pay off its current liabilities with its cash and cash equivalents, has also remained relatively stable between 0.55 and 0.95. While the cash ratio has been lower compared to the current and quick ratios, it is still within acceptable levels.
Overall, Manhattan Associates, Inc. appears to have maintained a solid liquidity position with consistent current, quick, and cash ratios over the past eight quarters. This indicates a healthy ability to manage its short-term financial obligations.
Additional liquidity measure
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 69.11 | 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 | 38.54 | 42.04 | 42.47 | 47.60 |
The cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources back into cash flow, fluctuated for Manhattan Associates, Inc. over the past eight quarters.
In Q4 2023, the cash conversion cycle stood at 50.97 days, slightly lower than the previous quarter Q3 2023 where it was 53.06 days. This suggests that the company was able to efficiently manage its cash conversion process in the most recent quarter.
Looking further back, there was a noticeable increase in the cash conversion cycle from Q2 2022 to Q4 2022, where it peaked at 53.47 days, signaling potential challenges in converting investments into cash flow during that period.
On the other hand, there was a significant improvement in the cash conversion cycle from Q2 2022 (40.43 days) to Q3 2022 (42.19 days), indicating better cash management practices by the company at that time.
Overall, monitoring the cash conversion cycle provides insights into Manhattan Associates, Inc.'s operational efficiency and how effectively the company is managing its working capital to generate cash flow.