Maximus Inc (MMS)

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 1.49 1.59 1.53 1.69 1.46 1.46 1.40 1.68 1.33 1.47 1.45 1.62 1.37 1.52 1.57 1.80 1.66 1.95 1.97 1.95
Quick ratio 1.32 1.40 1.36 1.35 1.23 1.40 1.17 1.44 1.09 1.35 1.32 1.46 1.23 1.42 1.45 1.67 1.53 1.81 1.50 1.53
Cash ratio 0.23 0.15 0.11 0.05 0.09 0.05 0.08 0.08 0.05 0.16 0.15 0.26 0.17 0.11 0.17 0.24 0.13 0.16 0.29 0.35

The liquidity ratios of Maximus Inc indicate the company's ability to meet its short-term financial obligations. The current ratio, which measures current assets relative to current liabilities, has shown some fluctuation over the past few quarters but generally remains healthy, ranging between 1.33 and 1.80. A current ratio above 1 suggests the company has more than enough current assets to cover its short-term liabilities.

The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Maximus Inc's quick ratio has varied between 1.09 and 1.67, reflecting the company's ability to meet its short-term obligations even without relying on selling inventory.

The cash ratio, which indicates the firm's ability to pay off current liabilities using only cash and cash equivalents, has ranged from 0.05 to 0.35, with a notable increase in the most recent quarter. This suggests Maximus Inc holds enough cash to cover a portion of its current liabilities, although a higher cash ratio would indicate a stronger liquidity position.

Overall, Maximus Inc's liquidity ratios demonstrate a generally healthy liquidity position, with the company maintaining adequate levels of current assets to cover its short-term obligations. Monitoring these ratios over time can provide insights into the company's financial health and ability to navigate short-term financial challenges.

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 60.50 59.12 65.25 63.03 61.53 69.54 56.94 78.26 63.61 69.48 69.11 69.52 71.62 101.28 74.41 79.61 82.90 91.97 61.95 61.43

The cash conversion cycle of Maximus Inc has fluctuated over the past few quarters, indicating variability in the company's efficiency in managing its working capital. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.

In the recent quarter, the cash conversion cycle was 60.50 days, showing a slight increase from the previous quarter's 59.12 days. This suggests that Maximus Inc took slightly longer to convert its resources into cash compared to the prior period. However, the current cycle remains relatively efficient compared to some earlier quarters where the cycle exceeded 70 days, reflecting potential challenges in managing working capital during those periods.

Analyzing the trend over multiple quarters, it's notable that there have been fluctuations in the cash conversion cycle, with periods of both shorter and longer cycles. Maximizing efficiency in managing inventory, accounts receivable, and accounts payable will be crucial for Maximus Inc to maintain a healthy cash conversion cycle and optimize its working capital management in the future.