PTC Inc (PTC)
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 | 0.78 | 0.70 | 0.76 | 1.19 | 0.76 | 0.68 | 0.73 | 1.43 | 1.35 | 1.23 | 1.24 | 1.29 | 1.38 | 1.23 | 1.18 | 1.31 | 1.22 | 1.27 | 1.13 | 1.17 |
| Quick ratio | 0.68 | 0.59 | 0.63 | 0.99 | 0.73 | 0.56 | 0.60 | 1.21 | 1.15 | 1.03 | 1.04 | 1.11 | 1.11 | 1.07 | 0.99 | 1.14 | 1.06 | 1.08 | 1.02 | 0.97 |
| Cash ratio | 0.16 | 0.16 | 0.16 | 0.28 | 0.25 | 0.17 | 0.20 | 0.49 | 0.34 | 0.42 | 0.39 | 0.49 | 0.42 | 0.49 | 0.43 | 0.56 | 0.45 | 0.61 | 0.72 | 0.42 |
Over the past few quarters, PTC Inc's liquidity position, as indicated by its current, quick, and cash ratios, has shown some fluctuations.
The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has fluctuated between 0.68 and 1.43. Typically, a current ratio above 1 indicates a healthy liquidity position. However, PTC's current ratio has generally been below 1 in recent quarters, suggesting potential challenges in meeting short-term liabilities with current assets alone.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also displayed variability, ranging from 0.56 to 1.21. Similar to the current ratio, the quick ratio has generally remained below 1, indicating a limited ability to meet immediate obligations without relying on inventory.
The cash ratio, which focuses solely on a company's most liquid assets (cash and cash equivalents) relative to its current liabilities, has varied between 0.16 and 0.72. The lower values suggest that PTC Inc may have limited cash reserves to cover short-term liabilities without relying on other assets.
Overall, PTC Inc's liquidity ratios indicate a mixed liquidity position, with a tendency towards lower levels of liquidity in recent quarters. It would be prudent for the company to closely monitor its liquidity and working capital management to ensure it can meet its short-term obligations effectively.
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 | 134.00 | 102.86 | 116.73 | 151.74 | 137.56 | 113.75 | 114.75 | 98.22 | 113.31 | 86.53 | 92.12 | 84.78 | 98.41 | 86.87 | 92.65 | 119.66 | 125.58 | 103.58 | 112.84 | 112.39 |
The cash conversion cycle of PTC Inc has displayed fluctuations over the past few quarters. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
The trend analysis reveals that the cash conversion cycle has been varying between 84.78 days to 151.74 days in the most recent quarter, indicating some instability in PTC Inc's working capital management efficiency.
In general, a shorter cash conversion cycle is preferred as it implies that the company is able to quickly convert its investments into cash. A longer cash conversion cycle may suggest inefficiencies in managing inventory, collecting receivables, or managing payables.
PTC Inc should focus on optimizing its inventory levels, improving receivables collection processes, and possibly renegotiating payment terms with suppliers to shorten the cash conversion cycle, which can ultimately enhance liquidity and operational efficiency.