OSI Systems Inc (OSIS)

Liquidity ratios

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Current ratio 1.49 1.47 1.43 1.43 1.47 1.41 1.43 1.37 1.22 1.17 1.11 1.11 2.06 2.03 1.90 1.84 1.87 1.70 1.69 1.61
Quick ratio 0.91 0.79 0.71 0.66 0.80 0.67 0.68 0.65 0.61 0.57 0.54 0.53 1.09 1.08 1.01 0.99 1.08 0.95 0.92 0.84
Cash ratio 0.12 0.13 0.18 0.14 0.13 0.12 0.08 0.10 0.10 0.13 0.12 0.08 0.23 0.28 0.22 0.23 0.23 0.27 0.25 0.22

The liquidity ratios of OSI Systems Inc indicate the company's ability to meet its short-term obligations and manage its current assets effectively.

1. Current ratio: The current ratio has generally been above 1 over the past few quarters, indicating that OSI Systems has sufficient current assets to cover its current liabilities. The ratio shows an improving trend from 1.17 in March 2022 to 1.49 in June 2024, which suggests a strengthening liquidity position.

2. Quick ratio: The quick ratio, which excludes inventory from current assets, shows a more conservative measure of liquidity. Although the quick ratio has been lower than the current ratio, it has also exhibited an improving trend, from 0.57 in March 2022 to 0.91 in June 2024. This indicates that the company is able to meet its short-term obligations more comfortably without relying on selling inventory.

3. Cash ratio: The cash ratio, which measures the company's ability to cover current liabilities with its cash and cash equivalents, has fluctuated over the quarters but generally maintained above 0.1. The ratio was highest at 0.28 in March 2021, indicating a strong cash position at that time.

Overall, the liquidity ratios of OSI Systems Inc show a positive trend, with improvements in the current ratio, quick ratio, and cash ratio over the quarters. This suggests that the company has been managing its current assets effectively to meet its short-term financial obligations.

Additional liquidity measure

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Cash conversion cycle days 211.81 205.49 188.58 176.35 175.56 177.34 181.29 176.57 170.55 165.30 164.88 156.80 150.97 148.65 154.16 141.97 144.44 127.84 129.81 133.55

The cash conversion cycle of OSI Systems Inc has shown fluctuations over the recent periods. The trend indicates an average cycle of around 160 days, highlighting the company's efficiency in managing its cash flow related to its operations, inventory, and receivables and payables.

It is noteworthy that the cycle has increased in the most recent quarter, which may signal potential challenges in managing working capital effectively. This increase could be due to changes in the company's operations, such as increased inventory levels or longer collection periods for receivables.

On the other hand, there have been periods where the cash conversion cycle decreased, indicating improvements in inventory turnover, faster collection of receivables, or more efficient management of payables. A shorter cash conversion cycle is generally seen as a positive indication of operational efficiency and liquidity management.

Overall, monitoring the cash conversion cycle is crucial for assessing the company's ability to convert its resources into cash effectively. It is essential for OSI Systems Inc to address any fluctuations in the cycle promptly to ensure optimal working capital management and sustainable operations.