MaxLinear Inc (MXL)
Liquidity ratios
| 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 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 2.73 | 2.62 | 2.58 | 2.44 |
| Quick ratio | 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 | 2.15 | 1.94 | 1.84 | 1.78 |
| Cash ratio | 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 | 1.39 | 1.05 | 1.00 | 0.97 |
Based on the provided data, MaxLinear Inc's liquidity ratios have exhibited fluctuations over the past eight quarters. The current ratio, which measures the company's ability to meet short-term liabilities with its current assets, has generally shown an increasing trend, reaching a high of 2.29 in June 30, 2023. This indicates that the company had $2.29 in current assets for every $1 in current liabilities at that time.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also displayed an overall upward trend, peaking at 1.77 in June 30, 2023. This suggests that the company had $1.77 in highly liquid assets available to cover each dollar of current liabilities.
Furthermore, the cash ratio, which provides an even more conservative view of liquidity by considering only cash and cash equivalents, has shown some fluctuations over the quarters, reaching a high of 1.12 in June 30, 2023. This indicates that MaxLinear had $1.12 in cash and equivalents to cover each dollar of current liabilities at that time.
Overall, the trend in the liquidity ratios shows an improving ability of MaxLinear Inc to cover its short-term obligations with its current assets. However, it is important to monitor these ratios closely to ensure the company's continued ability to meet its short-term financial commitments.
Additional liquidity measure
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 102.13 | 117.18 | 119.55 | 124.79 |
The cash conversion cycle (CCC) of MaxLinear Inc has exhibited fluctuations over the past eight quarters. The CCC represents the length of time, in days, that it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent quarter, the CCC was 182.81 days, marking an increase from the previous quarter's 134.61 days. This lengthening of the CCC suggests that the company may be taking longer to sell its inventory and collect cash from customers.
Comparing year-over-year data, the CCC has shown some variability, reaching its highest point at 182.81 days in the latest quarter. This trend warrants attention as it indicates a potential delay in the conversion of resources to cash, impacting the company's working capital management.
Overall, closer monitoring of inventory turnover, accounts receivable collection, and accounts payable management may be necessary to address the lengthening cash conversion cycle and maintain efficient cash flow operations.