RPC Inc (RES)

RPC, Inc.'s liquidity ratios have shown a positive trend over the past five years, indicating a strong ability to meet its short-term obligations.

The current ratio has consistently improved from 4.31 in 2019 to 4.79 in 2023, exceeding the industry average of 2. This suggests that RPC, Inc. has more than enough current assets to cover its current liabilities, providing a comfortable buffer in case of any financial difficulties.

Similarly, the quick ratio, which excludes inventory from current assets, also shows an upward trend from 3.26 in 2019 to 4.06 in 2023. This indicates that the company has a strong ability to meet its short-term obligations using its most liquid assets.

Furthermore, the cash ratio has shown significant improvement, increasing from 0.63 in 2019 to 1.57 in 2023. This suggests that RPC, Inc. holds a sufficient amount of cash and cash equivalents to cover its current liabilities, which is a positive sign of financial health and stability.

Overall, RPC, Inc.'s liquidity ratios display a healthy and improving financial position, reflecting its ability to honor its short-term obligations and navigate potential liquidity challenges.

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Additional liquidity measure

The cash conversion cycle of RPC, Inc. has shown varying trends over the past five years.

In 2023, the cash conversion cycle decreased to 93.78 days from 98.51 days in 2022. This suggests that RPC, Inc. improved its ability to convert its investments in inventory and accounts receivable into cash more efficiently during the year.

Comparing 2022 and 2021, there was a significant improvement in the cash conversion cycle, decreasing from 136.35 days to 98.51 days. This indicates that RPC, Inc. managed its working capital more effectively and reduced the amount of time it took to convert its resources into cash.

However, in 2021, there was a significant increase in the cash conversion cycle from 98.61 days in 2020 to 136.35 days. This implies that RPC, Inc. faced challenges in managing its working capital efficiently, leading to a longer cycle to convert investments into cash.

Moreover, in 2020, there was a substantial increase in the cash conversion cycle from 98.61 days in 2019 to 181.06 days. This longer cycle could suggest that RPC, Inc. faced difficulties in managing its cash flow and working capital effectively during that year.

Overall, the trend in the cash conversion cycle for RPC, Inc. shows some fluctuations over the past five years, indicating varying levels of efficiency in managing the company's working capital and cash flow. Further analysis would be needed to understand the specific factors influencing these changes in the cash conversion cycle.