Proto Labs Inc (PRLB)

Liquidity ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 4.04 2.74 2.80 2.41 2.61 3.17 3.24 3.12 3.34 3.07 2.68 2.65 4.82 4.47 4.17 4.49 4.97 4.19 4.26 4.89
Quick ratio 3.78 2.44 2.45 2.08 2.24 2.73 2.79 2.72 2.89 2.71 2.38 2.34 4.38 4.07 3.77 4.06 4.58 3.87 3.92 4.46
Cash ratio 2.07 1.38 1.31 1.08 1.12 1.39 1.34 1.28 1.41 1.15 0.97 1.06 3.22 2.89 2.57 2.75 3.38 2.65 2.65 2.91

Proto Labs Inc's liquidity ratios have fluctuated over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has shown an increasing trend from Q1 2022 to Q4 2023, ranging from 2.41 to 4.04. This indicates that Proto Labs has a strong ability to cover its short-term liabilities with its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrates an upward trend over the same period, varying from 2.23 to 3.76. This suggests that the company has a robust ability to meet its immediate liabilities without relying on the sale of inventory.

The cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) relative to current liabilities, reflects a similar positive trend, increasing from 1.22 in Q1 2022 to 2.25 in Q4 2023. This shows that Proto Labs has an increasing capacity to cover its short-term obligations with its most liquid assets.

Overall, Proto Labs Inc's liquidity ratios have shown improvement over the past eight quarters, indicating a strengthening financial position in terms of its ability to meet short-term obligations.

Additional liquidity measure

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 60.20 55.12 55.26 53.75 56.78 57.96 61.70 60.95 50.05 55.84 54.16 51.67 41.18 45.31 42.57 41.25 38.69 43.55 39.98 44.17

Proto Labs Inc's cash conversion cycle has shown some fluctuation over the past eight quarters, ranging from a low of 51.06 days in Q1 2023 to a high of 61.34 days in Q2 2022. The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales. A lower number indicates a more efficient use of working capital.

The trend for Proto Labs Inc's cash conversion cycle appears to have improved slightly in recent quarters, with Q1 2023 showing the lowest value at 51.06 days. This suggests that the company may have become more efficient in managing its working capital, potentially through better inventory management or faster collection of accounts receivable. However, the cycle increased in Q3 2023 to 53.15 days, indicating a potential slowdown in the conversion of resources into cash.

Overall, Proto Labs Inc should continue to monitor and strive to reduce its cash conversion cycle to improve its liquidity and overall financial health. A consistent focus on optimizing working capital management can lead to increased operational efficiency and profitability in the long run.