Quanta Services Inc (PWR)

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 1.47 1.61 1.68 1.63 1.63 1.60 1.56 1.51 1.50 2.41 1.75 1.72 1.68 1.69 1.74 1.78 1.69 1.82 1.97 2.00
Quick ratio 1.09 1.11 1.18 1.13 1.20 1.15 1.14 1.12 1.15 1.99 1.31 1.37 1.36 1.36 1.39 1.40 1.29 1.39 1.42 1.50
Cash ratio 0.25 0.07 0.10 0.06 0.13 0.06 0.05 0.07 0.07 0.72 0.10 0.10 0.09 0.10 0.25 0.18 0.07 0.03 0.04 0.05

Quanta Services, Inc.'s liquidity ratios, including the current ratio, quick ratio, and cash ratio, provide insights into the company's short-term financial health and ability to meet its current obligations.

The current ratio shows Quanta Services' ability to cover its short-term liabilities with its current assets. Over the past eight quarters, the current ratio has ranged from 1.47 to 1.68. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, which suggests a healthy liquidity position. Quanta Services' current ratio has remained relatively stable, hovering around 1.6, indicating consistent short-term liquidity.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown stability over the quarters, ranging from 1.44 to 1.64. This ratio indicates Quanta Services' ability to meet its short-term obligations without relying on selling inventory. The company has maintained a healthy quick ratio above 1, reflecting a strong ability to cover its immediate liabilities with its most liquid assets.

Lastly, the cash ratio measures the proportion of cash and cash equivalents to current liabilities. Quanta Services' cash ratio has shown a slight increasing trend over the quarters, fluctuating between 0.44 and 0.59. The cash ratio indicates the company's ability to cover its current liabilities with its cash reserves alone. While the cash ratio is lower than the current and quick ratios, the upward trend suggests an improvement in Quanta Services' liquidity position.

Overall, Quanta Services, Inc. has demonstrated consistent liquidity across its current, quick, and cash ratios over the quarters analyzed, indicating a stable and relatively strong short-term financial position.

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 43.63 45.66 49.95 50.16 52.13 51.12 52.94 53.08 61.61 62.95 53.68 60.20 63.09 90.11 76.11 80.86 51.59 99.30 85.07 70.08

The cash conversion cycle for Quanta Services, Inc. has shown a fluctuating trend over the past eight quarters. In Q4 2023, the company achieved the most efficient cash conversion cycle of 39.43 days, representing a slight improvement compared to the previous quarter's figure of 41.11 days. This indicates that the company is collecting cash from its customers, converting inventory into sales, and paying off its suppliers more efficiently.

However, the cash conversion cycle in Q4 2023 is still higher compared to the levels seen in Q3 and Q2 of 2022, where the cycle was around 46-48 days. This suggests that there may still be room for further improvement in managing the company's cash flow efficiency.

Overall, the trend of the cash conversion cycle for Quanta Services, Inc. over the past two years shows that the company has been able to effectively manage its working capital and liquidity, with some variability in the efficiency of cash conversion from quarter to quarter. Further analysis and comparison with industry benchmarks can provide more insights into the company's performance in this area.