Oceaneering International Inc (OII)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.74 | 1.78 | 2.28 | 2.37 | 2.68 |
| Quick ratio | 1.01 | 1.08 | 1.53 | 1.61 | 1.74 |
| Cash ratio | 0.63 | 0.63 | 1.01 | 1.09 | 1.06 |
Oceaneering International Inc's liquidity ratios have shown a downward trend over the years based on the provided data.
The current ratio, which measures the company's ability to cover short-term obligations with its current assets, decreased from 2.68 in 2020 to 1.74 in 2024. This indicates a decline in the company's ability to meet its short-term liabilities using its current assets.
The quick ratio also declined from 1.74 in 2020 to 1.01 in 2024. This ratio excludes inventory from current assets, providing a more conservative measure of liquidity. The decreasing trend suggests a potential reduction in Oceaneering International Inc's ability to meet its immediate obligations without relying on inventory.
Furthermore, the cash ratio, which focuses on the ability to cover current liabilities with cash and cash equivalents, decreased from 1.06 in 2020 to 0.63 in 2024. This indicates a decrease in the company's capacity to settle its short-term obligations with its cash resources alone.
Overall, the decreasing trend in all three liquidity ratios suggests a potential deteriorating liquidity position for Oceaneering International Inc over the years. It is essential for the company to monitor and manage its liquidity carefully to ensure it can meet its short-term obligations effectively.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 48.57 | 59.56 | 59.94 | 58.48 | 69.47 |
Oceaneering International Inc's cash conversion cycle has shown a declining trend over the past five years. Starting at 69.47 days in 2020, the cycle decreased to 58.48 days in 2021 and continued to improve, reaching 48.57 days by the end of 2024. This indicates that the company has become more efficient in managing its working capital, which includes managing accounts receivable, inventory, and accounts payable. A shorter cash conversion cycle implies that the company is able to convert its investments in inventory and accounts receivable into cash more quickly, which is a positive sign of liquidity and operational efficiency. Oceaneering International Inc's ability to optimize its cash conversion cycle over the years suggests effective management of its operating cycle and working capital needs.