Qualys Inc (QLYS)

Qualys Inc's liquidity ratios indicate its ability to meet short-term obligations. The Current Ratio, which measures the company's ability to cover short-term liabilities with current assets, has been fluctuating over the years but generally remains above 1, indicating a healthy liquidity position. The Quick Ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown a declining trend, which may raise some concerns about the company's ability to quickly cover obligations without relying on inventory. The Cash Ratio, which provides the most conservative measure of liquidity by focusing solely on cash and cash equivalents, has also been decreasing, indicating a reduced ability to cover short-term obligations with readily available cash. Overall, while the company's current ratio suggests a decent liquidity position, the decreasing trend in quick and cash ratios may require attention to ensure the company maintains adequate liquidity levels in the future.

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Additional liquidity measure

Qualys Inc's cash conversion cycle has been consistently reported as 0.00 days from December 31, 2020, to December 31, 2024. This indicates that the company is effectively managing its cash flows from operating activities, inventory turnover, and accounts receivable collection. With a cash conversion cycle of 0.00 days, Qualys Inc is able to efficiently convert its resources into cash without any delay, reflecting strong liquidity management and operational efficiency. This suggests that the company has a streamlined process in place for turning its investments into cash, which can contribute to its overall financial health and stability.