Penumbra Inc (PEN)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 6.01 | 5.82 | 6.25 | 6.12 | 6.06 | 5.99 | 5.74 | 5.37 | 5.21 | 5.23 | 4.93 | 5.31 | 5.53 | 5.76 | 6.04 | 5.68 | 5.83 | 5.46 | 7.42 | 5.15 |
| Quick ratio | 2.15 | 1.90 | 2.25 | 2.05 | 1.91 | 1.72 | 1.53 | 1.36 | 1.30 | 1.33 | 1.40 | 1.85 | 2.07 | 2.30 | 2.21 | 2.17 | 2.50 | 2.49 | 3.59 | 1.91 |
| Cash ratio | 2.15 | 1.90 | 2.25 | 2.05 | 1.91 | 1.72 | 1.53 | 1.36 | 1.30 | 1.33 | 1.40 | 1.85 | 2.07 | 2.30 | 2.21 | 2.17 | 2.50 | 2.49 | 3.59 | 1.91 |
Penumbra Inc's current ratio has shown fluctuations over the past few years, ranging from a low of 4.93 to a high of 7.42. The ratio has generally remained above 5, indicating a strong ability to cover its short-term liabilities with its current assets. However, there was a slight decline in the current ratio in the most recent quarter, dropping to 6.01.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also exhibited variability, with values fluctuating between 1.30 and 3.59. Similar to the current ratio, the quick ratio has generally been above 1, suggesting that Penumbra Inc has an adequate level of liquid assets to meet its short-term obligations. The quick ratio increased to 2.15 in the last quarter of 2024.
The cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents, has followed a similar trend to the quick ratio, reflecting values between 1.30 and 3.59. The cash ratio rose to 2.15 in December 31, 2024, indicating a healthy cushion of liquid assets available to cover immediate liabilities.
Overall, Penumbra Inc's liquidity ratios demonstrate a consistent ability to meet short-term obligations, with the current, quick, and cash ratios generally maintaining levels that indicate strong liquidity positions throughout the reporting periods.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 333.92 | 328.23 | 317.31 | 377.13 | 376.79 | 378.41 | 378.36 | 385.47 | 390.84 | 379.95 | 360.53 | 344.33 | 353.33 | 354.15 | 363.29 | 387.99 | 360.55 | 355.28 | 371.69 | 336.49 |
The cash conversion cycle for Penumbra Inc has shown fluctuations over the years. In general, the cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales.
From the data provided, we can observe that the cash conversion cycle ranged from a low of 317.31 days on June 30, 2024, to a high of 390.84 days on December 31, 2022. Generally, a shorter cash conversion cycle indicates better liquidity and efficiency in managing its working capital.
It is important for Penumbra Inc to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of its resources and maintain healthy cash flows. By analyzing trends in the cash conversion cycle, the company can identify areas for improvement in inventory management, accounts receivable collection, and accounts payable payments to enhance its operational efficiency and financial performance.