Insight Enterprises Inc (NSIT)
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 | 1.28 | 1.36 | 1.31 | 1.30 | 1.36 | 1.67 | 1.48 | 1.41 | 1.42 | 1.55 | 1.43 | 1.45 | 1.43 | 1.39 | 1.34 | 1.56 | 1.62 | 1.60 | 1.38 | 1.53 |
| Quick ratio | 1.14 | 1.21 | 1.17 | 1.13 | 1.20 | 1.40 | 1.26 | 1.17 | 1.21 | 1.33 | 1.27 | 1.25 | 1.27 | 1.19 | 1.16 | 1.33 | 1.40 | 1.40 | 1.23 | 1.31 |
| Cash ratio | 0.08 | 0.09 | 0.06 | 0.06 | 0.06 | 0.06 | 0.05 | 0.04 | 0.04 | 0.05 | 0.04 | 0.06 | 0.06 | 0.04 | 0.06 | 0.03 | 0.06 | 0.08 | 0.06 | 0.09 |
Insight Enterprises Inc.'s liquidity ratios indicate its ability to meet short-term obligations. The current ratio has been fluctuating slightly over the quarters, ranging from 1.28 to 1.36 in Q4 2023 to Q1 2023. This implies that the company may have sufficient current assets to cover its current liabilities, though it has been decreasing overall.
The quick ratio, which excludes inventory from current assets, also shows fluctuations between 1.21 to 1.29 throughout the quarters. This ratio indicates the firm's ability to meet short-term obligations without relying on selling inventory.
The cash ratio, which is the most stringent liquidity measure, has varied from 0.13 to 0.17 between Q4 2022 to Q3 2023. This ratio suggests the proportion of immediate cash available to cover current liabilities, with lower values indicating a lower ability to cover short-term obligations.
Overall, Insight Enterprises Inc.'s liquidity position seems stable, as the current and quick ratios generally remain above 1, indicating a potential ability to meet short-term obligations. However, the decreasing trend in these ratios over the quarters warrants continued monitoring to ensure the company's liquidity remains sufficient.
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 | 46.88 | 46.41 | 48.08 | 42.31 | 49.19 | 52.75 | 61.14 | 52.68 | 44.22 | 48.57 | 47.28 | 44.89 | 44.90 | 32.95 | 34.98 | 50.79 | 54.61 | 54.95 | 38.17 | 37.74 |
The cash conversion cycle of Insight Enterprises Inc. has varied over the past eight quarters. It indicates the time taken by the company to convert its investments in inventory into cash flows from sales.
The trend shows a slight decrease from Q4 2022 to Q1 2023, with the cycle compressing from 38.92 days to 31.38 days. This suggests an improvement in the efficiency of managing inventory, accounts receivable, and accounts payable during this period.
However, there was a subsequent increase in the cash conversion cycle in Q2 and Q3 of 2023, indicating a delay in converting inventory and receivables into cash. Q3 2023 had the highest cycle of 34.06 days in the recent quarters.
In Q4 2023, there was a decrease in the cash conversion cycle to 29.98 days, which signifies an improvement in the working capital management efficiency compared to the preceding quarters.
Overall, fluctuations in the cash conversion cycle can impact the company's liquidity, profitability, and financial health. Insight Enterprises Inc. should continue to focus on optimizing its inventory turnover, accounts receivable collection, and accounts payable management to enhance its cash flow cycle efficiency.