MYR Group Inc (MYRG)
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 | 1.37 | 1.39 | 1.37 | 1.36 | 1.33 | 1.43 | 1.39 | 1.44 | 1.50 | 1.54 | 1.47 | 1.49 | 1.44 | 1.43 | 1.47 | 1.66 | 1.61 | 1.62 | 1.69 | 1.72 |
| Quick ratio | 0.76 | 0.80 | 0.76 | 0.77 | 0.82 | 0.84 | 0.80 | 0.85 | 0.96 | 1.01 | 1.04 | 1.03 | 0.97 | 0.95 | 0.89 | 1.04 | 1.05 | 1.38 | 1.44 | 1.50 |
| Cash ratio | 0.03 | 0.04 | 0.03 | 0.08 | 0.08 | 0.06 | 0.04 | 0.04 | 0.16 | 0.17 | 0.16 | 0.17 | 0.06 | 0.05 | 0.02 | 0.09 | 0.03 | 0.02 | 0.01 | 0.00 |
Looking at the liquidity ratios of MYR Group Inc over the past eight quarters, we can see that the current ratio has fluctuated within a relatively narrow range, with a high of 1.44 in Q2 2022 and a low of 1.33 in Q4 2022. This indicates that the company has generally maintained a healthy ability to meet its short-term obligations using its current assets.
Similarly, the quick ratio, which excludes inventory from current assets, has also shown a stable trend, mirroring the movements of the current ratio. This suggests that MYR Group Inc has a strong ability to cover its short-term liabilities with assets that can be quickly converted to cash.
On the other hand, the cash ratio, which provides a more stringent measure of liquidity by focusing solely on cash and cash equivalents, has also varied but generally remained above 0.60. While this ratio has been slightly lower in some quarters, it is important to note that MYR Group Inc has maintained a reasonable level of cash reserves to meet its immediate payment obligations.
Overall, based on the liquidity ratios, MYR Group Inc appears to have maintained a consistent and stable liquidity position, demonstrating the ability to meet its short-term financial obligations effectively across the quarters analyzed.
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 | 17.04 | 17.88 | 15.77 | 14.81 | 20.20 | 21.34 | 23.31 | 24.25 | 34.31 | 26.58 | 28.55 | 29.04 | 38.40 | 32.71 | 31.90 | 31.18 | 36.33 | 59.92 | 52.93 | 55.59 |
The cash conversion cycle of MYR Group Inc has shown fluctuations over the past eight quarters. The company's cash conversion cycle, which represents the time it takes to convert investments in inventory and other resources into cash flows from sales, has generally decreased from Q1 2022 to Q1 2023. This indicates that MYR Group Inc has become more efficient in managing its working capital during this period.
In more detail, the cash conversion cycle decreased from 19.36 days in Q1 2022 to 10.82 days in Q1 2023, reaching its lowest point in this timeframe. This improvement suggests that MYR Group Inc has been able to manage its inventory, accounts receivable, and accounts payable more effectively, resulting in faster conversion of resources into cash.
Although there have been small fluctuations on a quarterly basis, with some quarters showing a slight increase in the cash conversion cycle, the overall trend is positive. This trend indicates that MYR Group Inc's working capital management has been efficient and effective, leading to a shorter cash conversion cycle and potentially improved liquidity and cash flow for the company.