Oceaneering International Inc (OII)

Oceaneering International, Inc.'s liquidity position as reflected through its liquidity ratios has shown fluctuations over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has gradually decreased from 2.68 in 2020 to 1.78 in 2023. This decline may indicate a potential weakening in the company's ability to meet its immediate payment obligations.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also exhibited a downward trend, declining from 2.35 in 2020 to 1.50 in 2023. This could suggest that the company may face challenges in meeting its short-term liabilities without relying on inventory liquidation.

The cash ratio, which provides the most conservative liquidity measure by only considering cash and cash equivalents, has also experienced a decrease over the years, falling from 1.68 in 2020 to 1.04 in 2023. This decline may indicate a decrease in Oceaneering International's ability to pay off its short-term obligations using its readily available cash resources.

Overall, the declining trend in all three liquidity ratios suggests that Oceaneering International may be experiencing a strain on its liquidity position. Investors and stakeholders should further investigate the company's cash management practices and ability to generate sufficient cash flows to meet its short-term financial obligations.

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Additional liquidity measure

The cash conversion cycle of Oceaneering International, Inc. has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle was the shortest at 59.56 days compared to the previous year. This indicates that the company was able to efficiently convert its investments in inventory and accounts receivable into cash during the year.

In 2022 and 2021, the cash conversion cycle remained relatively stable, indicating a consistent performance in managing its working capital. However, in 2020, there was a noticeable increase in the cash conversion cycle to 69.47 days, suggesting potential challenges in managing liquidity and working capital effectively.

The most significant increase in the cash conversion cycle was observed in 2019, where it reached 80.48 days. This prolonged cycle may have been attributed to difficulties in converting inventory and receivables into cash promptly, indicating inefficiencies in the company's working capital management.

Overall, Oceaneering International, Inc. has shown mixed performance in its cash conversion cycle over the past five years, emphasizing the importance of closely monitoring working capital dynamics to sustain efficient operations and financial health.