MaxLinear Inc (MXL)

The liquidity ratios of MaxLinear Inc show the company's ability to meet its short-term obligations and manage its current liabilities. The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has exhibited fluctuations over the past five years, ranging from 1.55 to 2.20 times. This indicates variability in the company's working capital management.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also displayed fluctuations, ranging from 1.13 to 1.74 times. This suggests that the company's ability to meet its short-term obligations without relying on inventory has varied over the years.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also experienced fluctuations, ranging from 0.68 to 0.97 times. This indicates variability in the company's capacity to settle its short-term obligations with its readily available cash.

Overall, the liquidity ratios of MaxLinear Inc show fluctuations over the past five years, indicating variability in the company's ability to manage its short-term obligations and current liabilities. It is important for stakeholders to monitor these ratios to assess the company's liquidity position and working capital management.

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Additional liquidity measure

The cash conversion cycle (CCC) of MaxLinear Inc has fluctuated over the past five years. In 2019, the company had a CCC of 102.13 days, indicating that it took the company, on average, 102.13 days to convert its resources into cash. Subsequently, the CCC increased to 165.80 days in 2020, indicating a longer cash conversion period. However, in 2021, the CCC reduced to 121.43 days, reflecting an improvement in the efficiency of the company's working capital management. This improvement continued in 2022, with the CCC further decreasing to 127.05 days.

Notably, in 2023, the CCC increased to 182.81 days, indicating a reversal in the trend of improving efficiency in the conversion of resources to cash. The increase in CCC may suggest potential challenges in managing the company's inventory, accounts receivable, and accounts payable, impacting its working capital and overall financial performance.

Overall, the fluctuation in MaxLinear Inc's cash conversion cycle over the years indicates varying levels of efficiency in managing its working capital and converting resources into cash. Evaluating the factors contributing to this fluctuation could provide insight into the company's operational and financial effectiveness.