Quidel Corporation (QDEL)

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 1.22 1.38 1.44 1.55 1.57 1.59 1.66 1.65 1.56 1.66 1.73 4.29 4.45 3.87 3,189.39 3.50 3.39 2.70 1.62 2.10
Quick ratio 0.10 0.14 0.11 0.10 0.20 0.22 0.28 0.44 0.34 0.30 0.48 2.68 2.56 1.95 2,205.29 2.67 1.45 0.37 0.40 0.80
Cash ratio 0.10 0.14 0.11 0.10 0.20 0.22 0.28 0.44 0.34 0.30 0.48 2.68 2.56 1.95 2,205.29 2.67 1.45 0.37 0.40 0.80

The liquidity ratios of Quidel Corporation, which include the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term obligations.

The current ratio indicates the company's ability to cover its short-term liabilities with its current assets. Quidel Corporation shows a fluctuating trend in its current ratio over the years, ranging from a low of 1.22 to a high of 4.45. The ratio peaked in December 2021 at 4.45, suggesting strong liquidity, but declined thereafter, reaching 1.22 by December 2024.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Quidel Corporation's quick ratio shows a similar pattern of fluctuation, ranging from 0.10 to 2.68. The ratio peaked in March 2022 at 2.68, indicating a high ability to meet short-term obligations without relying on inventory, but decreased to 0.10 by March 2024.

The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents alone. Quidel Corporation's cash ratio mirrors the trends seen in the current and quick ratios, with values ranging from 0.10 to 2.67. The ratio peaked in March 2021 at 2.67, highlighting strong cash reserves, but declined to 0.10 by June 2024.

Overall, the liquidity ratios of Quidel Corporation demonstrate fluctuations over time, with periods of strong liquidity followed by declines. It is essential for investors and stakeholders to track these ratios to assess the company's ability to manage its short-term financial obligations effectively.

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 121.66 128.25 133.72 133.09 134.78 129.12 126.86 131.50 143.62 184.28 245.40 107.38 169.64 185.38 231.88 195.25 132.78 132.43 153.22 98.88

The cash conversion cycle for Quidel Corporation has shown fluctuations over the periods under consideration. The company has managed to shorten its cash conversion cycle from a high of 245.40 days on June 30, 2022, to 121.66 days on December 31, 2024. This indicates an improvement in the efficiency of Quidel's cash management and working capital utilization.

A shorter cash conversion cycle suggests that Quidel is collecting cash from its receivables, selling its inventory, and paying its suppliers more efficiently. This would imply better liquidity and potentially improved profitability as the company is able to convert its investments in inventory and receivables into cash more quickly.

It is essential for Quidel to continually monitor and manage its cash conversion cycle to ensure optimal working capital management. By effectively managing the components of the cash conversion cycle, such as accounts receivable, inventory, and accounts payable, the company can enhance its financial health and operational efficiency.