Nextracker Inc. Class A Common Stock (NXT)
Liquidity ratios
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.09 | 2.20 | 2.21 | 2.11 | 1.98 | 1.87 | 1.73 | 1.65 | 1.72 | 1.58 | 1.51 | 1.46 | 1.51 | 1.51 | 1.49 | 1.60 | 1.49 |
| Quick ratio | 1.20 | 1.58 | 1.59 | 1.54 | 1.41 | 1.43 | 1.45 | 1.33 | 1.44 | 1.08 | 1.05 | 1.05 | 1.05 | 1.05 | 1.07 | 1.23 | 1.17 |
| Cash ratio | 0.74 | 0.77 | 0.70 | 0.59 | 0.53 | 0.48 | 0.61 | 0.53 | 0.31 | 0.17 | 0.19 | 0.12 | 0.08 | 0.08 | 0.30 | 0.45 | 0.49 |
The liquidity ratios of Nextracker Inc. Class A Common Stock show a stable and improving trend over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has steadily increased from 1.49 in March 2021 to 2.09 in March 2025. This indicates that the company has an increasing ability to meet its short-term obligations.
The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, has also shown improvement, rising from 1.17 in March 2021 to 1.20 in March 2025. This indicates that the company has a strong ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has exhibited an overall upward trend, increasing from 0.49 in March 2021 to 0.74 in March 2025. This suggests that the company's cash position has strengthened over the years, enhancing its ability to meet its short-term obligations without relying on other current assets.
Overall, the liquidity ratios of Nextracker Inc. Class A Common Stock demonstrate a healthy financial position with improving liquidity and an increasing ability to meet its short-term obligations.
Additional liquidity measure
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -12.07 | 63.22 | 47.12 | 56.95 | 58.70 | 78.09 | 68.20 | 64.99 | 92.64 | 96.95 | 96.14 | 105.58 | 89.15 | 97.41 | 50.26 | 49.47 | 26.20 |
The cash conversion cycle of Nextracker Inc. Class A Common Stock has shown fluctuations over the reported periods, ranging from a low of -12.07 days as of March 31, 2025, to a high of 105.58 days as of June 30, 2022. The cash conversion cycle represents the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
A shorter cash conversion cycle generally indicates that the company is efficiently managing its working capital, converting inventory into sales and then into cash quickly. On the other hand, a longer cash conversion cycle may signify inefficiencies in operations, excessive inventory levels, or difficulties in collecting payments from customers.
Nextracker Inc. experienced some challenges in managing its cash conversion cycle during the reporting period, as evidenced by the significant fluctuations in the cycle duration. The negative cash conversion cycle as of March 31, 2025, is unusual and would require further investigation to understand the underlying reasons behind this anomaly. Overall, monitoring and analyzing the cash conversion cycle can provide valuable insights into the company's operational efficiency and effectiveness in managing its working capital.