NV5 Global Inc (NVEE)

Liquidity ratios

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current ratio 1.95 2.06 1.81 1.85 2.12
Quick ratio 0.24 0.28 0.24 0.29 0.48
Cash ratio 0.24 0.28 0.24 0.29 0.48

Based on the provided data, the liquidity ratios of NV5 Global Inc show a mixed performance over the years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 1.0, indicating a satisfactory liquidity position. However, there has been a slight decline in the current ratio from 2020 to 2024, suggesting a slight weakening in the company's ability to meet its short-term obligations.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown a decreasing trend over the years. A quick ratio below 1.0 may indicate potential difficulties in meeting short-term liabilities without relying on the sale of inventory. NV5 Global Inc's quick ratio has been consistently below 1.0, signaling a relatively weaker liquidity position in terms of more immediate obligations.

The cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) compared to current liabilities, has remained stable over the years but at a relatively low level. A cash ratio below 1.0 indicates that the company may not have enough cash to cover its current liabilities immediately. NV5 Global Inc's cash ratio aligns with the quick ratio in reflecting a somewhat weaker liquidity position.

Overall, while the company's current ratio indicates a generally acceptable liquidity position, the decline in this ratio along with consistently low quick and cash ratios suggests that NV5 Global Inc may have some challenges in meeting its short-term obligations without depending on the sale of inventory or generating additional cash inflows. Monitoring and improving these liquidity ratios may be necessary to ensure the company's financial health and operational stability in the future.


Additional liquidity measure

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash conversion cycle days 0.00 0.00 0.00 0.00 0.00

Based on the provided data, NV5 Global Inc's cash conversion cycle has consistently been 0.00 days for the years 2020 to 2024. This indicates that the company is effectively managing its cash flow and working capital, with minimal delays in converting its investments in inventory and receivables into cash. A cash conversion cycle of 0.00 days suggests that NV5 Global Inc is efficiently managing its operating cycle and is able to quickly convert its sales into cash without tying up excessive funds in inventory or receivables. This efficiency can result in improved liquidity and financial stability for the company, enabling it to meet its financial obligations and invest in growth opportunities.