NV5 Global Inc (NVEE)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.95 2.05 2.29 2.05 2.06 1.81 1.84 1.79 1.81 1.92 1.86 2.02 1.85 2.56 2.36 2.08 2.12 2.47 2.39 2.36
Quick ratio 0.24 0.38 0.19 0.28 0.28 0.24 0.17 0.19 0.24 0.33 0.28 0.54 0.29 0.89 0.84 0.68 0.48 0.56 0.55 0.35
Cash ratio 0.24 0.38 0.19 0.28 0.28 0.24 0.17 0.19 0.24 0.33 0.28 0.54 0.29 0.89 0.84 0.68 0.48 0.56 0.55 0.35

The current ratio of NV5 Global Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024, ranging from a low of 1.81 to a high of 2.56. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A ratio above 1 indicates the company has more current assets than current liabilities, with higher values typically seen as more favorable. NV5 Global Inc's current ratio generally remained above 2, reflecting a healthy liquidity position, but there were some decreases in the ratio towards the end of the period, which could be indicative of potential liquidity concerns.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. NV5 Global Inc's quick ratio experienced varying levels over the same period, with values ranging from 0.17 to 0.89. A quick ratio above 1 suggests the company can meet its short-term liabilities without relying on the sale of inventory. The company's quick ratio showed some volatility, with notable fluctuations observed, which could raise concerns about its ability to cover immediate obligations with its most liquid assets.

On the other hand, the cash ratio, which is the strictest measure of liquidity as it considers only cash and cash equivalents compared to current liabilities, also demonstrated fluctuations for NV5 Global Inc during the period. The cash ratio ranged from 0.17 to 0.89, indicating the company's ability to cover its current liabilities solely with its cash reserves. While the cash ratio provides insight into the company's ability to handle immediate payments, it is crucial to assess in conjunction with other liquidity ratios to get a comprehensive view of NV5 Global Inc's liquidity position.

In summary, NV5 Global Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, exhibit fluctuations over the period analyzed. While maintaining current ratios above 2 indicates adequate liquidity in general, the declining trend and volatility in quick and cash ratios towards the end of the period suggest a need for further examination of the company's short-term liquidity management and potential risks.


Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Based on the provided data, NV5 Global Inc has consistently maintained a cash conversion cycle of 0.00 days throughout the periods listed from March 31, 2020, to December 31, 2024. This indicates that the company is efficiently managing its cash flows related to its operating cycle, which typically involves the conversion of raw materials into finished products, selling those products, and collecting cash from customers.

A cash conversion cycle of 0.00 days suggests that NV5 Global Inc is able to quickly convert its investments in inventory and receivables back into cash, without experiencing delays or inefficiencies in the process. This efficiency can be beneficial for the company's liquidity and overall financial health, as it allows for a smoother operation and better management of working capital.

Overall, NV5 Global Inc's consistently low cash conversion cycle indicates strong financial management and efficiency in its working capital management, which can contribute to its ability to fund operations, invest in growth, and potentially generate higher returns for its shareholders.