Progyny Inc (PGNY)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 3.44 | 2.72 | 2.62 | 2.45 | 3.66 |
| Quick ratio | 3.54 | 2.96 | 2.81 | 2.59 | 3.76 |
| Cash ratio | 2.00 | 1.19 | 1.21 | 1.41 | 2.22 |
The liquidity ratios of Progyny Inc show a consistent trend of maintaining a strong liquidity position over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has steadily increased from 2.45 in 2020 to 3.44 in 2023, indicating improving liquidity. This suggests that Progyny Inc has ample current assets to meet its short-term liabilities.
Similarly, the quick ratio, which excludes inventory from current assets in the calculation, also reflects a strong liquidity position for Progyny Inc. The quick ratio has followed the same trend as the current ratio, indicating that the company can cover its short-term obligations even when excluding inventories.
The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has shown some fluctuation but overall remains at healthy levels. The ratio has ranged from 1.21 in 2022 to 2.14 in 2023, indicating that Progyny Inc has a sufficient level of cash to meet its immediate obligations.
Overall, the liquidity ratios of Progyny Inc demonstrate strong liquidity and the ability to meet its short-term financial obligations comfortably. This indicates a favorable financial position and suggests that the company is well-equipped to handle any unexpected cash needs or operational challenges in the near term.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 51.33 | 78.91 | 67.48 | 50.38 | 56.37 |
The cash conversion cycle of Progyny Inc has fluctuated over the past five years, indicating variations in the efficiency of its working capital management. In 2019, the company had a cash conversion cycle of 36.36 days, which decreased to 22.29 days in 2020, suggesting an improvement in its ability to convert resources into cash. However, in 2021, the cycle increased to 40.42 days, indicating a delay in converting investments back into cash. Subsequently, there was a significant reduction in the cycle to 46.97 days in 2022, possibly due to changes in operational processes or market conditions. The most recent data for 2023 shows a decrease to 27.22 days, which may reflect enhanced efficiency in managing cash flows. Overall, Progyny Inc should focus on maintaining a lower cash conversion cycle to optimize working capital utilization and enhance liquidity management.