Impinj Inc (PI)
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 | 0.99 | 0.99 | 1.12 | 9.42 | 8.73 | 8.09 | 5.57 | 5.59 | 6.49 | 7.73 | 9.44 | 7.43 | 7.21 | 1.52 | 1.54 | 1.55 | 6.21 | 8.38 | 7.17 | 9.20 |
| Quick ratio | 0.67 | 0.71 | 0.86 | 6.78 | 5.45 | 4.79 | 3.30 | 3.95 | 5.28 | 6.62 | 8.03 | 6.24 | 6.44 | 1.31 | 1.28 | 1.27 | 4.75 | 6.27 | 5.58 | 7.49 |
| Cash ratio | 0.50 | 0.51 | 0.69 | 5.06 | 3.67 | 3.35 | 2.14 | 2.83 | 4.10 | 5.41 | 6.45 | 5.06 | 5.45 | 1.06 | 1.04 | 1.06 | 3.84 | 5.37 | 4.95 | 6.06 |
The liquidity ratios of Impinj Inc provide insights into the company's ability to meet its short-term financial obligations.
1. Current ratio: The current ratio measures the company's ability to pay off its short-term liabilities with its current assets. Impinj Inc's current ratio has fluctuated over the years, ranging from a high of 9.44 to a low of 0.99. A higher current ratio indicates a stronger liquidity position, while a lower ratio may signal potential difficulties in meeting short-term obligations.
2. Quick ratio: The quick ratio, also known as the acid-test ratio, is a more stringent measure of liquidity that excludes inventory from current assets. Impinj Inc's quick ratio has also shown variability, with values ranging from 8.03 to 0.67. A quick ratio above 1 indicates that the company can quickly cover its short-term liabilities with its most liquid assets.
3. Cash ratio: The cash ratio is the most conservative liquidity metric, focusing solely on cash and cash equivalents to cover short-term obligations. Impinj Inc's cash ratio has ranged from 6.45 to 0.50, reflecting the company's ability to rely on cash reserves to meet immediate financial needs.
Overall, Impinj Inc's liquidity ratios indicate fluctuations in its short-term financial strength over the years, with periods of stronger and weaker liquidity positions. It is essential for the company to maintain a balance between current assets and liabilities to ensure it can meet its obligations as they come due.
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 | 166.04 | 160.46 | 156.04 | 183.51 | 189.28 | 194.00 | 193.59 | 156.57 | 110.00 | 100.44 | 115.25 | 120.37 | 91.06 | 80.32 | 94.74 | 115.33 | 136.95 | 123.44 | 119.66 | 124.74 |
The cash conversion cycle of Impinj Inc has exhibited fluctuations over the reported periods. The company's cash conversion cycle, a key indicator of its efficiency in managing cash flows related to its operating cycle, shows a general trend of improvement from over 120 days in early 2020 to around 100 days in the later periods, albeit with some periodic volatility.
In the recent periods, specifically from September 2021 to March 2023, Impinj's cash conversion cycle experienced a significant decline, indicating a more efficient management of its working capital. However, from June 2023 to September 2024, there was a notable increase in the cash conversion cycle, indicating potential challenges in managing cash flows related to operations.
Overall, the company's cash conversion cycle trend suggests varying efficiency levels in managing its cash inflows and outflows as it relates to its operating cycle. Further analysis of the underlying factors impacting this cycle may provide insights into Impinj's working capital management practices and potential areas for improvement.