Insight Enterprises Inc (NSIT)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.28 | 1.36 | 1.42 | 1.43 | 1.62 |
| Quick ratio | 1.14 | 1.20 | 1.21 | 1.27 | 1.40 |
| Cash ratio | 0.08 | 0.06 | 0.04 | 0.06 | 0.06 |
Insight Enterprises Inc.'s liquidity ratios have shown a slight decline over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has decreased from 1.62 in 2019 to 1.28 in 2023. This indicates that the company may have less ability to meet its short-term obligations with its current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a declining trend from 1.47 in 2019 to 1.23 in 2023. This suggests that Insight Enterprises Inc. may have fewer liquid assets to cover its short-term liabilities.
The cash ratio, which provides the most conservative measure of liquidity by only considering cash and cash equivalents, has fluctuated slightly over the years but has generally remained relatively low, with the ratio standing at 0.17 in 2023. This implies that the company may have limited cash reserves to meet its immediate obligations.
Overall, these liquidity ratios indicate that Insight Enterprises Inc. may face some challenges in meeting its short-term obligations with its current assets. It is important for the company to closely monitor its liquidity position and potentially take steps to improve its liquidity management to ensure financial stability and sustainability.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 47.00 | 49.19 | 44.22 | 44.97 | 54.69 |
Insight Enterprises Inc.'s cash conversion cycle has displayed fluctuations over the past five years. The company's ability to convert its resources efficiently into cash has improved steadily from 44.45 days at the end of 2019 to 29.98 days at the end of 2023. Lowering the cash conversion cycle indicates that Insight Enterprises Inc. has been managing its working capital more effectively, potentially increasing its liquidity and operational efficiency. The decreasing trend suggests improvements in inventory management, accounts receivable collection, and payment of accounts payable. Overall, the decreasing cash conversion cycle reflects positively on Insight Enterprises Inc.'s financial management and operational performance over the years.