Proto Labs Inc (PRLB)

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 3.66 3.59 4.08 3.60 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
Quick ratio 1.94 1.87 2.22 1.88 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
Cash ratio 1.94 1.87 2.22 1.88 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

Proto Labs Inc has maintained a solid current ratio over the past few years, indicating a strong ability to cover its short-term obligations with current assets. The company's current ratio ranged between 2.41 and 4.82 during the period under review, with the highest ratio recorded on December 31, 2020. However, there was a slight decline in the current ratio towards the end of the period, with the ratio standing at 3.66 on December 31, 2024.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also reflected a similar trend. Proto Labs Inc's quick ratio ranged from 0.97 to 3.22 during the period, with the highest ratio again observed on December 31, 2020. Despite some fluctuations, the quick ratio showed a general stability over the years, indicating the company's ability to meet its short-term liabilities without relying on inventory liquidation.

The cash ratio, which is the most stringent measure of liquidity as it considers only cash and cash equivalents to cover current liabilities, also demonstrated a consistent pattern. Proto Labs Inc's cash ratio ranged from 0.97 to 3.22, maintaining a relatively stable position over the years. While the cash ratio did not reach the levels of the current and quick ratios, it still showed a healthy cash position to meet short-term obligations.

Overall, Proto Labs Inc's liquidity ratios depict a company with robust liquidity positions throughout the period, enabling it to manage its short-term financial obligations effectively. While there were some fluctuations in the ratios, they generally remained within healthy ranges, reflecting a strong financial position in terms of liquidity management.


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 16.17 16.35 16.10 16.70 17.68 18.02 18.90 18.83 18.16 19.46 19.90 19.02 18.10 14.34 14.29 16.43 18.31 17.31 17.53 16.98

Proto Labs Inc's cash conversion cycle has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the company's cash conversion cycle ranged from a low of 14.29 days to a high of 19.90 days.

The cash conversion cycle measures how long it takes for a company to convert its investments in inventory into cash from sales. A shorter cash conversion cycle indicates that the company is able to quickly convert its inventory into sales and then into cash, which is generally seen as a positive sign.

Proto Labs Inc's cash conversion cycle saw a decreasing trend from March 31, 2021, to June 30, 2021, indicating that the company was able to manage its inventory more efficiently and convert it into cash faster during that period. However, the cycle increased again from June 30, 2021, to March 31, 2024, showing some challenges in managing its cash flow efficiently.

Overall, Proto Labs Inc's cash conversion cycle has exhibited some variability, and it would be important for the company to focus on optimizing its inventory management and sales processes to ensure a more consistent and efficient cash conversion cycle in the future.