Envista Holdings Corp (NVST)
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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.23 | 2.20 | 1.29 | 1.23 | 1.15 | 1.09 | 1.11 | 1.52 | 1.52 | 1.39 | 1.12 | 1.02 | 0.94 | 2.09 | 1.83 | 1.83 | 1.41 |
| Quick ratio | 1.73 | 1.66 | 0.93 | 0.86 | 0.81 | 0.76 | 0.42 | 0.86 | 1.16 | 0.50 | 0.48 | 0.39 | 0.74 | 1.03 | 0.99 | 0.58 | 0.30 |
| Cash ratio | 1.20 | 1.10 | 0.57 | 0.51 | 0.49 | 0.45 | 0.42 | 0.86 | 0.89 | 0.50 | 0.48 | 0.39 | 0.53 | 1.03 | 0.99 | 0.58 | 0.30 |
The liquidity ratios of Envista Holdings Corp have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 1, indicating a healthy liquidity position. The ratio peaked at 2.23 in Q4 2023 and has shown a strong upward trend since Q1 2023.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown improvement over the quarters. The ratio has generally been above 1, with a peak of 1.90 in Q4 2023, indicating that the company has an adequate level of highly liquid assets to cover its short-term liabilities.
The cash ratio, which measures the company's ability to cover its current liabilities with only its cash and cash equivalents, has shown improvement over the quarters, albeit with some fluctuations. The ratio has been generally above 1, with a peak of 1.38 in Q4 2023, indicating the company has sufficient cash on hand to meet its short-term obligations.
Overall, Envista Holdings Corp's liquidity ratios have been relatively strong and have shown improvement over the past quarters, indicating a robust liquidity position and the ability to meet its short-term financial obligations.
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 69.23 | 77.07 | 78.24 | 76.49 | 67.44 | 71.25 | 45.30 | 44.95 | 60.16 | 38.55 | 44.39 | 41.57 | 56.94 | 51.92 |
The cash conversion cycle of Envista Holdings Corp has shown some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 83.66 days, indicating that it took the company approximately 83.66 days to convert its investments in inventory and other resources into cash from sales. This was an improvement compared to the previous quarter, Q3 2023, where the cycle was longer at 95.18 days.
However, looking at the trend over the past year, the cash conversion cycle has been relatively volatile, ranging from a low of 80.09 days in Q4 2022 to a high of 98.26 days in Q2 2023. This suggests some variability in the efficiency of the company's working capital management.
Overall, Envista Holdings Corp's management of the cash conversion cycle has shown some inconsistency, and it would be beneficial for the company to focus on stabilizing and potentially reducing this cycle to enhance its cash flow and operating efficiency.