Impinj Inc (PI)
Liquidity ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 9.07 |
| Quick ratio | 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 | 7.19 |
| Cash ratio | 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 | 5.98 |
Impinj Inc's liquidity ratios have fluctuated over the past years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, shows a decreasing trend from 2019 to 2024. The ratio ranged from a high of 9.44 in Jun 2022 to a low of 0.99 in Sep 2024.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, follows a similar pattern as the current ratio. It ranged from a high of 8.03 in Jun 2022 to a low of 0.71 in Sep 2024.
The cash ratio, which indicates the firm's ability to cover its short-term liabilities with its cash and cash equivalents, exhibits a comparable trend to the current and quick ratios. It ranged from a high of 6.45 in Jun 2022 to a low of 0.51 in Sep 2024.
Overall, the decreasing trend in all three liquidity ratios implies a potential liquidity strain for Impinj Inc in recent quarters. Further analysis of the company's cash flow and working capital management may be warranted to address these liquidity concerns.
Additional liquidity measure
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 142.45 |
The cash conversion cycle for Impinj Inc has varied over the past few quarters. Generally, a shorter cash conversion cycle indicates that the company is able to quickly convert its investments in inventory and other resources into cash inflows from customers.
Looking at the trend, we see that the cash conversion cycle has fluctuated over the periods provided. For instance, the cycle was relatively shorter in the most recent quarter at 160.46 days compared to the peak of 194.00 days recorded in the fourth quarter of 2023. This suggests that Impinj Inc has been able to manage its working capital more efficiently recently.
However, it is important to note that the cash conversion cycle increased significantly in the first quarter of 2024 to 183.51 days, possibly indicating challenges in managing inventory or collections from customers during that period.
The management should continue to monitor the cash conversion cycle to ensure it remains at optimal levels, balancing the need to maintain sufficient inventory levels to fulfill customer demand while also ensuring timely collections to improve cash flow efficiency.