Photronics Inc (PLAB)
Liquidity ratios
| Oct 31, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 5.07 | 4.67 | 4.32 | 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 |
| Quick ratio | 4.75 | 4.36 | 3.99 | 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 |
| Cash ratio | 3.49 | 3.17 | 2.86 | 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 |
Photronics Inc's liquidity ratios have shown a generally positive trend over the past few quarters. The current ratio has been consistently above 3, indicating a strong ability to cover short-term obligations with current assets. It has increased steadily from 2.80 in Feb 2020 to 5.07 in Oct 2024, showcasing an improving liquidity position.
Similarly, the quick ratio has also shown a healthy trend, staying above 2 in most quarters. This ratio excludes inventory from current assets, providing a more conservative measure of liquidity. The gradual increase from 1.38 in Feb 2020 to 4.75 in Oct 2024 demonstrates the company's ability to meet short-term obligations without relying heavily on inventory.
The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, has been consistently above 1.5, indicating a solid cash position. The increasing trend from 1.38 in Feb 2020 to 3.49 in Oct 2024 signifies an enhanced ability to meet short-term obligations solely with cash.
Overall, based on the liquidity ratios, Photronics Inc appears to have a strong liquidity position with improving trends over the quarters, reflecting better management of current assets and liabilities.
Additional liquidity measure
| Oct 31, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 84.94 | 73.31 | 66.27 | 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 |
The cash conversion cycle of Photronics Inc has fluctuated over the past few quarters, with periods of positive and negative cycles. In general, a shorter cash conversion cycle indicates that the company is able to convert its investments in inventory and receivables into cash quickly, which is a positive signal.
From the data provided, we can see that the company had a positive cash conversion cycle for most of the quarters, indicating that it took an average of around 60 to 85 days to convert its investments into cash. A positive cash conversion cycle suggests that the company may be facing challenges in efficiently managing its inventory or collecting receivables, which could impact its liquidity.
However, there were a few quarters where the cash conversion cycle was negative, which could be a result of the company being able to collect receivables before paying off its suppliers. While a negative cash conversion cycle may seem favorable as it indicates a shorter cycle, it could also indicate potential financial risks if not managed properly, such as stretching payables too far.
Overall, the trend in the cash conversion cycle of Photronics Inc warrants further analysis to understand the underlying factors driving these fluctuations and to ensure efficient working capital management.