QuinStreet Inc (QNST)
Liquidity ratios
| 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 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.34 | 1.35 | 1.51 | 1.59 | 1.68 | 1.57 | 1.62 | 1.62 | 1.67 | 1.86 | 1.91 | 1.84 | 1.78 | 1.74 | 1.85 | 1.77 | 2.16 | 1.97 | 1.83 | 1.73 |
| Quick ratio | 1.28 | 1.28 | 1.41 | 1.49 | 1.58 | 1.49 | 1.57 | 1.57 | 1.62 | 1.80 | 1.85 | 1.76 | 1.75 | 1.66 | 1.78 | 1.64 | 2.05 | 1.88 | 1.76 | 1.66 |
| Cash ratio | 0.40 | 0.36 | 0.54 | 0.68 | 0.82 | 0.56 | 0.82 | 0.85 | 0.88 | 1.05 | 1.19 | 0.96 | 0.95 | 0.92 | 1.05 | 0.98 | 1.25 | 1.07 | 0.92 | 0.81 |
QuinStreet Inc's liquidity ratios have shown fluctuations over the periods analyzed. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from 1.34 to 2.16. The current ratio has generally been above 1, indicating that QuinStreet has had sufficient current assets to cover its current liabilities.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has fluctuated between 1.28 and 2.05. This ratio also generally indicates that the company has been able to meet its short-term obligations using its most liquid assets.
Looking at the cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, the values have varied between 0.36 and 1.25. This ratio shows the company's ability to settle immediate debts without relying on inventory or receivables.
Overall, QuinStreet Inc's liquidity ratios demonstrate a fluctuating but generally healthy liquidity position over the periods evaluated. The company has maintained a level of liquidity that indicates its ability to meet its short-term financial obligations. However, management should continue to monitor these ratios to ensure continued liquidity and financial stability.
Additional liquidity measure
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 35.53 | 37.37 | 25.33 | 19.84 | 16.65 | 37.05 | 19.19 | 19.85 | 24.83 | 20.87 | 12.41 | 20.42 | 25.21 | 24.94 | 20.22 | 11.29 | 20.18 | 20.84 | 23.11 | 22.44 |
The cash conversion cycle of QuinStreet Inc has fluctuated over the past few quarters, ranging from a low of 11.29 days to a high of 37.37 days. This metric represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Analyzing the trend, we observe that the cash conversion cycle has shown variability, indicating potential changes in the company's efficiency in managing its working capital. During the latest quarter, the cycle stood at 35.53 days, which indicates a moderate amount of time taken to convert investments into cash.
A shorter cash conversion cycle is generally favorable as it signifies that the company is efficient in managing its inventory, collecting receivables, and paying its payables. In contrast, a longer cycle can suggest inefficiencies in these processes, leading to increased working capital requirements and potential liquidity challenges.
It would be beneficial for QuinStreet Inc to further investigate the factors contributing to the fluctuations in its cash conversion cycle to identify areas for improvement in working capital management and overall operational efficiency.