Qualys Inc (QLYS)

Qualys Inc's liquidity ratios, as indicated by the current ratio, quick ratio, and cash ratio, have shown some fluctuations over the past few years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has ranged between 1.32 and 1.91 during the period under review. While the current ratio has generally remained above 1, indicating a healthy liquidity position, there has been a slight downward trend in more recent periods, suggesting a potential slight decrease in the company's short-term liquidity.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also experienced fluctuations, ranging from 0.89 to 1.48. The quick ratio generally followed a downward trend over the years, implying that Qualys Inc may have become less able to meet its short-term obligations without relying on the sale of inventory.

The cash ratio, which specifically focuses on the ability to cover current liabilities with cash and cash equivalents, has also shown a decreasing trend, falling from 1.48 to 0.89. This indicates that Qualys Inc may be holding less cash relative to its current liabilities in more recent periods, potentially reducing its immediate ability to pay off obligations.

Overall, while Qualys Inc has maintained liquidity ratios above industry benchmarks throughout the period, the downward trends in these ratios suggest a slight decrease in the company's short-term liquidity position. It is advisable for the company to closely monitor its liquidity levels and manage its current assets efficiently to ensure it can meet its financial obligations in a timely manner.

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Additional liquidity measure

Qualys Inc has maintained a consistently low cash conversion cycle over the past several quarters, with each period showing a cycle of 0.00 days except for the quarter ending September 30, 2023, where it increased to 5.06 days. A cash conversion cycle of 0.00 days indicates that Qualys is efficient in converting its investments in inventory and other resources into cash quickly.

The increase in the cash conversion cycle in September 30, 2023, may suggest a temporary delay in converting investments into cash during that period, which could be due to various reasons such as changes in customer payment terms, inventory management issues, or delays in accounts receivable collection. However, the subsequent return to a 0.00 days cycle in the following quarters indicates that Qualys quickly resolved these issues and maintained its operational efficiency in managing its working capital.

Overall, Qualys Inc's cash conversion cycle demonstrates strong working capital management, efficiency in operations, and effective utilization of resources to generate cash flows.