Envista Holdings Corp (NVST)

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
Current ratio	2.04	2.08	2.22	2.27	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
Quick ratio	1.63	1.60	1.72	1.74	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
Cash ratio	1.22	1.15	1.26	1.21	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

Envista Holdings Corp's liquidity ratios show a mixed performance over the period. The current ratio increased from 2.09 in September 2020 to 2.04 in December 2024, indicating the company's ability to cover its current liabilities with current assets improved. However, the quick ratio fluctuated significantly, with a low of 0.39 in March 2021 and a high of 1.74 in March 2024. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

The cash ratio, which is the most stringent liquidity ratio, also displayed fluctuations, ranging from a low of 0.39 in March 2021 to a peak of 1.26 in June 2024. This ratio reflects the company's ability to pay off its current liabilities with cash and cash equivalents alone.

Overall, Envista Holdings Corp's liquidity position improved over the period as indicated by the current ratio and cash ratio trend. However, the fluctuating quick ratio suggests varying levels of inventory and accounts receivable management throughout the period. Continuous monitoring and management of liquidity are crucial for the company to ensure it can meet its short-term obligations efficiently.

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
Cash conversion cycle	days	59.86	65.32	63.21	71.83	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 (CCC) of Envista Holdings Corp has shown fluctuations over the periods provided. The CCC represents the company's ability to convert its resources efficiently into cash.

From September 30, 2020, to December 31, 2020, the CCC increased from 51.92 days to 56.94 days. This suggests a deterioration in Envista Holdings Corp's ability to manage its working capital effectively.

However, from March 31, 2021, to September 30, 2021, there was a significant improvement in the CCC, decreasing to 38.55 days. This indicates an enhancement in the company's cash conversion efficiency during this period.

There was a sudden increase in the CCC by December 31, 2021, reaching 60.16 days, which may imply challenges in managing operating cycle components efficiently.

Subsequently, from March 31, 2022, to September 30, 2022, the CCC remained relatively stable, indicating consistent working capital management practices within the organization.

The CCC continued to rise, as seen from December 31, 2022, to June 30, 2024, touching its peak at 78.24 days on June 30, 2023. This prolonged cash conversion cycle may signify potential liquidity concerns or delays in realizing cash from operations for Envista Holdings Corp.

Overall, fluctuations in the cash conversion cycle of Envista Holdings Corp suggest varying levels of efficiency in converting its resources into cash over the analyzed periods, with an increasing trend towards longer cash conversion cycles in recent quarters.