Patterson Companies Inc (PDCO)

Patterson Companies Inc's liquidity ratios indicate its ability to meet short-term obligations. The current ratio has remained relatively stable around 1.6 in recent years, suggesting the company has sufficient current assets to cover its current liabilities. However, there was a slight decrease in the current ratio to 1.33 as of April 27, 2024.

In terms of the quick ratio, which provides a more stringent measure of liquidity by excluding inventory, Patterson Companies Inc's ratio improved from 0.14 in April 30, 2022, to 0.50 in April 27, 2024. This indicates an increasing ability to meet short-term obligations without relying on inventory to generate cash.

The cash ratio, reflecting the proportion of current liabilities covered by cash and cash equivalents, remained stable at around 0.15 until a decrease to 0.09 as of April 27, 2024. This suggests that while the company's cash holdings are slightly declining, it still has enough cash to cover a portion of its short-term obligations.

Overall, Patterson Companies Inc's liquidity ratios indicate a generally stable liquidity position, with room for improvement, particularly in increasing the cash reserves to enhance its ability to meet short-term obligations effectively.

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Additional liquidity measure

The cash conversion cycle of Patterson Companies Inc experienced fluctuations over the analyzed period. The cycle decreased from 55.03 days on April 30, 2022, to 31.94 days on April 29, 2023, reflecting an improvement in the company's ability to convert its resources into cash. However, by April 30, 2023, the cycle increased to 56.92 days before dropping to 33.05 days on April 27, 2024. The cycle then increased slightly to 55.08 days by April 30, 2024. Overall, the company has shown some volatility in its cash conversion cycle, which may indicate challenges in managing working capital efficiently during the period under review.