Insight Enterprises Inc (NSIT)

Insight Enterprises Inc's current ratio, a measure of short-term liquidity, shows a fluctuating trend over the years, ranging from 1.18 to 1.67. This indicates the company generally has sufficient current assets to cover its current liabilities, with the ratio consistently above 1, although there have been periods of lower ratios which may necessitate further investigation into potential liquidity issues.

The quick ratio, which excludes inventory from current assets, illustrates the company's ability to meet short-term obligations without relying on inventory sales. Despite some variability, the quick ratio generally remains low, hovering between 0.03 and 0.11. This suggests that a significant portion of the company's current assets is tied up in inventory, potentially impacting its ability to quickly meet its liabilities in the short term.

The cash ratio, representing the most liquid assets available to cover immediate liabilities, shows a similar pattern to the quick ratio, indicating that the company may not hold a substantial amount of cash relative to its current obligations. The ratio remains relatively low, ranging from 0.03 to 0.11, highlighting potential challenges in meeting short-term obligations solely through available cash resources.

In summary, while Insight Enterprises Inc maintains a current ratio above 1, suggesting overall liquidity, the consistently low quick and cash ratios indicate that a significant portion of its current assets may not be readily available to meet short-term liabilities. This could pose liquidity risks and may require the company to assess its working capital management practices to ensure adequate funds are available when needed.

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Additional liquidity measure

Insight Enterprises Inc's cash conversion cycle has varied over the periods specified. The cash conversion cycle represents the time it takes for the company to convert its resources into cash inflows.

Analyzing the trend data provided, we observe fluctuations in the cash conversion cycle for Insight Enterprises Inc. In the earlier periods from March 31, 2020, to September 30, 2020, the company saw a decreasing trend in the cycle duration, indicating efficient management in converting resources to cash.

However, from December 31, 2020, to March 31, 2022, the cash conversion cycle increased, reaching its peak at 16.66 days on March 31, 2022. This period of increase may suggest inefficiencies in managing cash flows and working capital.

Subsequently, there was a slight decrease in the cash conversion cycle from March 31, 2022, to December 31, 2024, with the cycle reaching its lowest duration of 6.45 days on December 31, 2024. This decline points towards improved cash management practices and quicker conversion of resources to cash inflows.

Overall, Insight Enterprises Inc's cash conversion cycle has shown variability over the periods analyzed, with fluctuations indicating changes in the company's efficiency in managing working capital and converting resources into cash. Further analysis may be required to understand the underlying reasons for these fluctuations and to assess the company's cash management strategies.