Mercury Systems Inc (MRCY)
Liquidity ratios
| 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 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.07 | 4.58 | 4.36 | 4.65 | 4.02 | 4.26 | 4.47 | 4.83 | 4.20 | 4.13 | 4.33 | 3.95 | 4.26 | 3.85 | 3.05 | 4.62 | 5.04 | 6.52 | 5.05 | 5.35 |
| Quick ratio | 1.25 | 1.13 | 1.11 | 0.88 | 0.84 | 0.86 | 1.11 | 1.19 | 1.08 | 0.50 | 1.41 | 0.57 | 1.61 | 0.75 | 0.52 | 1.64 | 1.82 | 3.34 | 1.69 | 1.71 |
| Cash ratio | 0.77 | 0.69 | 0.75 | 0.44 | 0.31 | 0.29 | 0.38 | 0.29 | 0.34 | 0.50 | 0.64 | 0.57 | 0.75 | 0.75 | 0.52 | 1.64 | 1.82 | 3.34 | 1.69 | 1.71 |
Mercury Systems Inc's liquidity ratios show consistently strong financial health over the past few quarters. The current ratio has ranged between 3.85 and 5.35, with the most recent value standing at 4.58 as of June 30, 2024. This suggests that the company has more than enough current assets to cover its short-term liabilities, indicating a healthy liquidity position.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has varied between 0.50 and 3.34. Despite some fluctuations, the quick ratio has generally remained above 1.0, highlighting the company's ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, representing the most conservative liquidity measure by considering only cash and equivalents to current liabilities, has shown a similar trend, ranging from 0.29 to 3.34. This indicates that Mercury Systems Inc has maintained a solid cash position relative to its current liabilities, ensuring it has sufficient liquid resources to cover immediate financial needs.
Overall, based on these liquidity ratios, Mercury Systems Inc appears to have a robust liquidity position, with ample resources to meet its short-term obligations and financial commitments.
Additional liquidity measure
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 193.83 | 187.66 | 181.95 | 188.76 | 176.29 | 177.10 | 185.22 | 169.45 | 158.99 | 108.18 | 171.45 | 105.34 | 168.54 | 121.45 | 130.82 | 113.86 | 113.06 | 98.04 | 106.77 | 107.66 |
The cash conversion cycle of Mercury Systems Inc has exhibited fluctuations over the past few quarters. The cycle measures the time it takes for the company to convert its investments in inventories into cash received from customers.
From December 2019 to June 2020, the cash conversion cycle increased steadily, reaching its peak at 130.82 days in March 2020. However, the company managed to significantly reduce the cycle to 98.04 days by September 2020, signaling an improvement in efficiency.
Subsequently, there was a fluctuating trend until March 2021, where the cycle increased to 121.45 days before declining to 105.34 days in June 2021. This reduction continued, and by March 2022, the cycle had decreased to 108.18 days, indicating more efficiency in managing working capital.
The most significant improvement was seen from March 2022 to December 2022, where the cycle decreased to 169.45 days. Despite a slight increase in the cycle in the following quarter, the trend reversed again, and by June 2023, it had reduced to 176.29 days.
In the most recent quarter, ending in June 2024, the cash conversion cycle increased to 193.83 days. This increase suggests that the company may be facing challenges in efficiently managing its working capital, potentially due to factors such as extended payment terms or issues with inventory turnover.
Overall, while there have been fluctuations in the cash conversion cycle of Mercury Systems Inc, the company has demonstrated improvements in working capital management in some periods, but there is a need for continued monitoring and potential adjustments to maintain efficiency in converting investments into cash.