Patterson Companies Inc (PDCO)
Liquidity ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.41 | 1.37 | 1.30 | 1.33 | 1.33 | 1.43 | 1.43 | 1.56 | 1.56 | 1.63 | 1.63 | 1.64 | 1.64 | 1.57 | 1.57 | 1.60 | 1.60 | 1.63 | 1.63 | 1.65 |
| Quick ratio | 0.10 | 0.12 | 0.11 | 0.09 | 0.50 | 0.10 | 0.48 | 0.11 | 0.53 | 0.11 | 0.48 | 0.15 | 0.59 | 0.13 | 0.49 | 0.25 | 0.53 | 0.15 | 0.50 | 0.14 |
| Cash ratio | 0.10 | 0.12 | 0.11 | 0.09 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 | 0.15 | 0.15 | 0.13 | 0.13 | 0.25 | 0.13 | 0.15 | 0.15 | 0.14 |
The current ratio for Patterson Companies Inc has shown a gradual decline from 1.65 as of April 30, 2022, to 1.41 as of January 31, 2025. This indicates a decreasing ability to cover its short-term obligations with current assets over the period.
In terms of the quick ratio, the company's ability to meet its short-term liabilities with its most liquid assets has fluctuated, with a low of 0.09 on April 30, 2024, to a high of 0.59 on April 29, 2023. This ratio suggests a varying level of liquidity and ability to pay off immediate debts without relying on inventory.
The cash ratio, which measures the firm's ability to cover its current liabilities with cash and cash equivalents, has also fluctuated slightly, ranging from 0.09 to 0.15 over the period. This implies that Patterson Companies Inc has maintained a relatively stable cash position to meet its short-term obligations.
Overall, the liquidity ratios for Patterson Companies Inc show a fluctuating trend, with the current ratio decreasing gradually, the quick ratio displaying significant fluctuations, and the cash ratio remaining relatively stable. Management should monitor and manage the company's liquidity position to ensure it can meet its financial obligations efficiently.
Additional liquidity measure
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 62.68 | 56.96 | 59.66 | 54.60 | 32.87 | 63.88 | 42.77 | 60.90 | 39.40 | 64.33 | 36.31 | 56.04 | 31.58 | 67.05 | 41.25 | 63.82 | 38.15 | 64.21 | 37.20 | 55.86 |
The cash conversion cycle of Patterson Companies Inc fluctuated over the period from April 30, 2022, to January 31, 2025. The average cash conversion cycle during this period was around 48.52 days.
The company's cash conversion cycle represents the time it takes to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert inventory into cash quickly.
In the case of Patterson Companies Inc, we observe fluctuations in the cash conversion cycle over the period, varying between a low of 31.58 days to a high of 67.05 days. A decreasing trend in the cash conversion cycle can be interpreted positively, indicating that the company is managing its working capital more efficiently and improving its cash flow generation from operating activities.
Conversely, an increasing trend in the cash conversion cycle may suggest inefficiencies in inventory management, payment collection, or supplier credit terms, which could potentially impact the company's liquidity and overall financial health.
Overall, it is essential for Patterson Companies Inc to carefully monitor and manage its cash conversion cycle to ensure optimal working capital management and sustainable cash flow generation.