MaxLinear Inc (MXL)
Liquidity ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.77 | 1.95 | 2.09 | 1.99 | 2.20 | 2.18 | 2.29 | 1.98 | 1.65 | 1.60 | 1.70 | 1.94 | 1.95 | 1.81 | 1.79 | 1.75 | 1.55 | 1.66 | 2.72 | 2.89 |
| Quick ratio | 1.12 | 1.16 | 1.42 | 1.42 | 1.61 | 1.55 | 1.66 | 1.38 | 1.10 | 1.08 | 1.18 | 1.26 | 1.21 | 1.19 | 1.25 | 1.19 | 0.93 | 0.96 | 2.13 | 2.29 |
| Cash ratio | 0.65 | 0.88 | 0.97 | 0.86 | 0.84 | 0.87 | 1.01 | 0.75 | 0.60 | 0.57 | 0.74 | 0.72 | 0.63 | 0.73 | 0.62 | 0.75 | 0.64 | 0.46 | 1.53 | 1.58 |
MaxLinear Inc's liquidity ratios indicate the company's ability to meet its short-term obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has shown a fluctuating trend over the years. Starting at 2.89 in March 2020, the current ratio gradually decreased to 1.55 by December 2020, indicating a potential liquidity issue. However, the ratio improved thereafter, reaching 2.20 by December 2023, before slightly declining to 1.77 by December 2024. Overall, the company's current ratio remained above 1, suggesting it generally has sufficient current assets to cover its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibited fluctuations during the period. It started at 2.29 in June 2023, decreased to 0.93 by December 2020, but improved steadily thereafter, reaching 1.12 by December 2024. This indicates the company's ability to meet its immediate obligations improved over time.
The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents to current liabilities, also experienced variations. It ranged from 0.46 in September 2020 to 1.01 in June 2023, with a general upward trend showing the company's increasing ability to cover its short-term liabilities with readily available cash.
In summary, MaxLinear Inc's liquidity ratios reflect some fluctuations but generally indicate the company's ability to meet its short-term obligations, with improvements in liquidity observed over the years.
Additional liquidity measure
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 216.37 | 175.92 | 173.80 | 180.08 | 182.81 | 134.61 | 123.77 | 136.25 | 127.05 | 121.34 | 111.03 | 118.92 | 121.43 | 104.32 | 106.34 | 109.38 | 140.81 | 213.54 | 98.94 | 100.72 |
The cash conversion cycle of MaxLinear Inc has shown some fluctuations over the years, with periods of improvement followed by increases in the cycle length. The company's cash conversion cycle is a measure of the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to September 30, 2020, there was a notable decrease in the cash conversion cycle, indicating that the company was able to manage its working capital more efficiently during that period. However, from September 30, 2020, to December 31, 2020, there was a significant increase in the cycle length, suggesting potential challenges in managing cash flows and working capital during that quarter.
The cycle continued to fluctuate over the following periods, with improvements and setbacks in the company's ability to efficiently convert its assets into cash. By June 30, 2022, the cycle had decreased significantly, indicating better working capital management. However, from December 31, 2022, to March 31, 2023, there was a notable increase in the cycle, suggesting potential issues in managing cash flows and working capital.
Overall, the cash conversion cycle of MaxLinear Inc has shown variability, reflecting the company's ability to effectively manage its working capital and cash flows over time. Analyzing these trends can provide insights into the company's liquidity and operational efficiency.