Myriad Genetics Inc (MYGN)
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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.90 | 1.96 | 1.99 | 2.01 | 1.27 | 1.33 | 1.83 | 2.00 | 2.73 | 3.07 | 2.57 | 2.37 | 2.46 | 1.99 | 2.21 | 2.95 | 2.26 | 3.14 | 3.25 | 2.86 |
| Quick ratio | 1.46 | 1.44 | 1.52 | 1.64 | 0.96 | 1.06 | 1.38 | 1.98 | 2.27 | 2.62 | 2.22 | 2.40 | 2.26 | 0.96 | 1.83 | 1.85 | 1.96 | 2.53 | 2.34 | 2.29 |
| Cash ratio | 0.65 | 0.65 | 0.71 | 0.90 | 0.41 | 0.55 | 0.55 | 1.24 | 1.48 | 1.71 | 1.61 | 1.95 | 1.80 | 0.61 | 1.18 | 1.20 | 1.48 | 1.60 | 1.26 | 1.24 |
The liquidity ratios of Myriad Genetics Inc show a fluctuating trend over the provided periods. The current ratio, measuring short-term solvency, has varied between 1.27 and 3.25, indicating the company's ability to meet its short-term obligations with its current assets. Generally, a current ratio above 1 is considered acceptable, with higher values indicating stronger liquidity.
The quick ratio, which provides a more stringent assessment by excluding inventory from current assets, ranges from 0.96 to 2.62. This ratio reveals the company's ability to cover immediate liabilities without relying on inventory sales. A quick ratio above 1 signifies good short-term liquidity, with higher values indicating a safer position.
The cash ratio, representing the most conservative measure of liquidity, has fluctuated between 0.41 and 1.95. This ratio shows the company's ability to cover current liabilities solely with its cash and cash equivalents. A higher cash ratio implies a stronger ability to settle short-term obligations promptly.
Overall, while the company has displayed some variability in its liquidity ratios, the general trend suggests it has maintained a satisfactory level of short-term liquidity over the analyzed periods. It is essential for stakeholders to monitor these ratios consistently to assess the company's ability to meet its financial obligations effectively.
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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 54.24 | 50.22 | 52.01 | 54.10 | 54.00 | 50.90 | 54.88 | 49.44 | 38.20 | 44.08 | 37.02 | 30.89 | 52.87 | 51.83 | 64.50 | 58.39 | 45.34 | 51.36 | 59.66 | 56.48 |
The cash conversion cycle of Myriad Genetics Inc has shown fluctuations over the periods analyzed. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A lower cash conversion cycle indicates that the company is efficiently managing its working capital.
In the most recent period, as of September 30, 2024, the cash conversion cycle was 54.24 days, indicating that on average, it takes Myriad Genetics Inc about 54 days to convert its investments in inventory and other current assets into cash flows from sales. This suggests that the company may have some inefficiencies in managing its working capital compared to previous periods, where the cash conversion cycle was lower.
Looking at a longer historical perspective, there have been fluctuations in the cash conversion cycle over the past several quarters, with some periods showing a more efficient management of working capital (e.g., December 31, 2022, and March 31, 2022), while others have shown a longer cycle (e.g., March 31, 2021, and June 30, 2021).
Overall, a careful evaluation and trend analysis of the cash conversion cycle can provide insights into how effectively Myriad Genetics Inc is managing its working capital, liquidity, and operational efficiency. The company may benefit from further analyzing the reasons behind the fluctuations in the cash conversion cycle and implementing strategies to optimize working capital management.