NV5 Global Inc (NVEE)
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 | 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 | 2.20 | 2.43 | 2.66 | 2.51 |
| Quick ratio | 1.24 | 1.10 | 1.07 | 0.19 | 1.14 | 0.33 | 0.28 | 0.54 | 1.23 | 0.89 | 0.84 | 0.68 | 0.48 | 0.56 | 0.55 | 0.35 | 0.28 | 0.39 | 0.58 | 0.63 |
| Cash ratio | 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 | 0.28 | 0.39 | 0.58 | 0.63 |
The current ratio for NV5 Global Inc has shown some fluctuations over the reporting periods, ranging from a low of 1.79 to a high of 2.56. This ratio indicates the company's ability to cover its short-term obligations with its current assets. Generally, a current ratio above 1 is considered healthy, with higher ratios indicating a stronger liquidity position.
On the other hand, the quick ratio, which excludes inventories from current assets, has varied widely, reaching as low as 0.19 in the most recent period. This suggests that the company may have difficulty meeting its short-term obligations without relying on inventory, which may take time to convert into cash.
The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, has also shown fluctuations. While the ratios have generally been above 0.2, indicating some liquidity cushion, the ratio dipped to 0.17 in the second quarter of 2023 before recovering in subsequent periods.
Overall, the current and cash ratios indicate that NV5 Global Inc has a reasonable ability to meet its short-term obligations, but the significant fluctuations in the quick ratio suggest potential challenges in quickly converting assets into cash. Management should monitor and potentially improve the company's liquidity position to ensure financial stability.
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 | 15.54 | 15.17 | 15.63 | -28.59 | 16.95 | -25.85 | -28.46 | -26.93 | 22.67 | -25.70 | -23.71 | -21.31 | -24.50 | -21.34 | -24.34 | -25.13 | -27.04 | -17.89 | -16.06 | -16.85 |
The cash conversion cycle for NV5 Global Inc has shown fluctuation over the past several quarters. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle indicates better efficiency in managing working capital.
NV5 Global Inc's cash conversion cycle was 15.54 days at the end of December 2023, which was higher compared to the previous quarter at 15.17 days. This may indicate that the company took slightly longer to convert its investments into cash during this period.
Looking back over the past year, there were instances where the cash conversion cycle was negative, such as in March 2023, indicating that the company was able to convert its investments into cash very quickly during that period. However, negative cash conversion cycles may also raise concerns about aggressive sales tactics or inadequate investment in inventory.
Analyzing the trend further, NV5 Global Inc has generally shown some improvement in its cash conversion cycle compared to the same period in the prior year. For example, at the end of December 2022, the cycle was 16.95 days, which was higher than the corresponding figure at the end of December 2023.
Overall, while there have been fluctuations in the cash conversion cycle for NV5 Global Inc, it is essential for the company to continue monitoring and managing this metric to ensure effective management of working capital and cash flow.