Insight Enterprises Inc (NSIT)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.18 | 1.28 | 1.36 | 1.42 | 1.43 |
| Quick ratio | 0.06 | 0.08 | 0.06 | 0.04 | 0.06 |
| Cash ratio | 0.06 | 0.08 | 0.06 | 0.04 | 0.06 |
Insight Enterprises Inc's liquidity ratios indicate its ability to meet short-term obligations and manage cash efficiently.
1. Current Ratio: The current ratio has shown a declining trend from 1.43 in 2020 to 1.18 in 2024. Although the ratio remains above 1, indicating that the company has more current assets than current liabilities, the decreasing trend suggests a potential strain on liquidity over the years.
2. Quick Ratio: The quick ratio, which excludes inventory from current assets, has also shown a declining trend from 0.06 in 2020 to 0.06 in 2024. This ratio indicates that Insight Enterprises Inc may have limited ability to meet its short-term obligations using only its most liquid assets.
3. Cash Ratio: The cash ratio, which focuses solely on cash and cash equivalents, has fluctuated over the years but remains relatively low, varying between 0.04 and 0.08. This suggests that the company relies more on assets other than cash to meet its short-term obligations.
In summary, Insight Enterprises Inc's liquidity ratios show a concerning trend of declining liquidity over the years, particularly in terms of quick assets. The company may need to closely monitor its liquidity position and take measures to improve its ability to meet short-term obligations.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 6.45 | 8.98 | 11.00 | 14.99 | 9.62 |
Insight Enterprises Inc's cash conversion cycle has shown fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was 9.62 days. It increased to 14.99 days by December 31, 2021, indicating a longer period for the company to convert its investments in inventory and receivables into cash.
However, by December 31, 2022, the cash conversion cycle decreased to 11.00 days, suggesting an improvement in the company's efficiency in managing its working capital. This trend continued as of December 31, 2023, with a further reduction to 8.98 days, indicating a quicker turnover of cash.
As of December 31, 2024, Insight Enterprises Inc's cash conversion cycle was at its lowest point at 6.45 days, reflecting a rapid conversion of inventory and receivables to cash. Overall, the downward trend in the cash conversion cycle indicates that the company has been effectively managing its working capital and improving its cash flow efficiency over the years.