MACOM Technology Solutions Holdings Inc (MTSI)
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 | 8.35 | 8.18 | 7.34 | 7.24 | 9.11 | 4.05 | 9.30 | 9.04 | 8.36 | 7.55 | 7.49 | 6.91 | 5.61 | 5.47 | 4.88 | 5.19 | 5.07 | 4.74 | 4.50 | 4.34 |
| Quick ratio | 6.36 | 6.09 | 5.48 | 5.49 | 7.25 | 3.29 | 7.66 | 7.54 | 7.08 | 5.29 | 5.33 | 5.92 | 4.62 | 3.55 | 3.03 | 3.61 | 3.99 | 2.79 | 2.38 | 2.22 |
| Cash ratio | 5.38 | 5.06 | 4.38 | 4.50 | 6.16 | 2.79 | 6.33 | 6.34 | 6.03 | 5.29 | 5.33 | 4.92 | 3.71 | 3.55 | 3.03 | 3.61 | 3.51 | 2.79 | 2.38 | 2.22 |
MACOM Technology Solutions Holdings Inc has demonstrated consistent and strong liquidity positions over the period based on the current ratio, quick ratio, and cash ratio. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has consistently remained above 4.0, reaching a high of 9.30 in March 2023. This indicates that the company has a comfortable buffer of current assets to meet its short-term liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also reflects strong liquidity levels. The company's quick ratio has consistently been above 2.0, indicating that MACOM has an adequate level of liquid assets to cover its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also been robust for MACOM. The company has maintained a cash ratio above 2.0, signaling a strong ability to cover its immediate liabilities with readily available cash resources.
Overall, based on the liquidity ratios, MACOM Technology Solutions Holdings Inc appears to have a solid liquidity position, which bodes well for its financial stability and ability to meet its short-term obligations.
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 | 217.32 | 235.25 | 241.60 | 242.89 | 206.11 | 208.87 | 197.88 | 173.24 | 169.19 | 93.20 | 86.87 | 133.53 | 125.20 | 77.87 | 78.28 | 83.13 | 127.87 | 102.31 | 103.65 | 113.32 |
The cash conversion cycle of MACOM Technology Solutions Holdings Inc has shown fluctuations over the past several quarters, indicating variations in its working capital efficiency. The company's cash conversion cycle reached its peak at 242.89 days in Dec 31, 2023, and has since decreased to 217.32 days as of Sep 30, 2024. This suggests that the company has been able to manage its working capital more effectively in recent quarters.
A lower cash conversion cycle signifies that the company is taking less time to convert its investments in inventory and accounts receivable into cash. This can be seen as a positive indicator of operational efficiency and liquidity management for MACOM Technology Solutions Holdings Inc.
However, it's worth noting that there were instances of considerably lower cash conversion cycles in the past, such as 77.87 days in Mar 31, 2021 and 78.28 days in Jun 30, 2021. This indicates that the company was able to optimize its working capital more efficiently during those periods compared to the recent quarters.
Overall, the company should continue to monitor and manage its cash conversion cycle closely to ensure optimal working capital management and operational efficiency in the future.