Photronics Inc (PLAB)
Liquidity ratios
| Jan 28, 2024 | Oct 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 31, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 31, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Oct 31, 2019 | Jul 28, 2019 | Apr 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.36 | 4.24 | 4.05 | 3.89 | 3.52 | 3.33 | 3.44 | 3.38 | 3.13 | 3.13 | 3.16 | 3.11 | 3.48 | 3.50 | 2.91 | 3.08 | 2.80 | 2.81 | 2.64 | 2.67 |
| Quick ratio | 4.07 | 3.96 | 3.58 | 3.39 | 2.98 | 2.89 | 2.98 | 1.77 | 2.54 | 2.70 | 1.69 | 1.61 | 2.87 | 3.01 | 1.49 | 1.55 | 1.38 | 1.36 | 1.24 | 1.20 |
| Cash ratio | 2.81 | 2.77 | 2.50 | 2.23 | 1.88 | 1.85 | 1.93 | 1.77 | 1.64 | 1.57 | 1.69 | 1.61 | 1.91 | 1.95 | 1.49 | 1.55 | 1.38 | 1.36 | 1.24 | 1.20 |
Photronics, Inc.'s liquidity position, as indicated by its current, quick, and cash ratios, has shown a consistent improvement over the past quarters. The current ratio has steadily increased from 3.52 in Q1 2023 to 4.36 in Q1 2024, indicating the company's ability to cover its short-term obligations with its current assets. Similarly, the quick ratio has also shown an upward trend from 3.25 in Q1 2023 to 4.09 in Q1 2024, reflecting an improvement in the company's ability to meet its immediate liabilities with its most liquid assets.
The cash ratio, which measures the company's ability to cover current liabilities with its cash and cash equivalents, has also demonstrated an increasing trend from 2.14 in Q1 2023 to 2.99 in Q1 2024. This suggests that Photronics, Inc. has been building up its cash reserves, enhancing its ability to meet short-term obligations without relying on selling inventory or collecting receivables.
Overall, the consistent improvement in all three liquidity ratios indicates that Photronics, Inc. has a strong liquidity position and is well-equipped to meet its short-term financial obligations.
Additional liquidity measure
| Jan 28, 2024 | Oct 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 31, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 31, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Oct 31, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 72.46 | 70.79 | 58.57 | 66.56 | 68.93 | 62.63 | 66.35 | -17.04 | 65.87 | 90.32 | -15.01 | -18.22 | 74.54 | 78.01 | -27.24 | -13.55 | -24.89 | -32.41 | -37.96 | -37.57 |
The cash conversion cycle of Photronics, Inc. has shown fluctuation in recent quarters. The company's cash conversion cycle was relatively low in Q3 2023 at 55.00 days, indicating effective management of inventory, accounts receivable, and accounts payable. However, the cycle increased in subsequent quarters, reaching its peak in Q2 2022 at 78.71 days.
The longer cash conversion cycles in Q1 2023, Q4 2022, and Q2 2022 could suggest inefficiencies in either managing inventory levels, collecting receivables, or paying suppliers. These extended cycles may tie up cash within the business for longer periods, potentially impacting working capital and liquidity.
Overall, a downward trend in the cash conversion cycle is desirable as it indicates that the company is improving its efficiency in managing cash flows from operations. Monitoring and managing the components of the cash conversion cycle effectively can help Photronics, Inc. optimize its working capital and enhance financial performance.