RPC Inc (RES)
Liquidity ratios
| 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 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.79 | 4.90 | 5.46 | 4.54 | 3.94 | 3.30 | 3.37 | 3.71 | 3.76 | 3.79 | 4.64 | 4.34 | 5.38 | 4.61 | 6.96 | 4.06 | 4.31 | 3.53 | 3.13 | 3.53 |
| Quick ratio | 4.35 | 4.01 | 3.99 | 3.80 | 3.88 | 2.78 | 2.78 | 2.99 | 3.69 | 3.07 | 3.67 | 3.43 | 4.53 | 3.57 | 5.13 | 3.09 | 3.68 | 2.63 | 2.38 | 3.25 |
| Cash ratio | 1.47 | 1.23 | 0.73 | 1.12 | 0.71 | 0.18 | 0.45 | 0.53 | 0.63 | 0.67 | 1.26 | 0.82 | 1.06 | 1.56 | 2.47 | 0.70 | 0.49 | 0.36 | 0.28 | 0.69 |
The liquidity position of RPC, Inc. has been improving steadily over the quarters based on the provided current, quick, and cash ratios.
The current ratio, which indicates the company's ability to meet its short-term obligations with its current assets, has increased from 3.94 in Q4 2022 to 4.79 in Q4 2023. This indicates that the company's short-term liquidity has strengthened, with a higher level of current assets relative to current liabilities.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows a positive trend. It has increased from 3.39 in Q4 2022 to 4.06 in Q4 2023. This demonstrates that RPC, Inc. has a solid ability to meet its short-term liabilities using its most liquid assets.
The cash ratio, which represents the company's ability to cover its current liabilities with the most liquid asset (cash and cash equivalents), has also shown significant improvement. It has risen from 0.82 in Q4 2022 to 1.57 in Q4 2023, indicating a strengthening liquidity position and a better ability to cover immediate obligations with cash on hand.
Overall, the liquidity ratios suggest that RPC, Inc. has been effectively managing its short-term liquidity position over the quarters, with increasing levels of current assets, quick assets, and cash in relation to current liabilities. This indicates a healthy liquidity position for the company, which is essential for its operational stability and financial health.
Additional liquidity measure
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 104.97 | 90.48 | 93.78 | 80.46 | 121.60 | 118.43 | 122.22 | 130.85 | 169.29 | 151.51 | 149.40 | 194.66 | 186.19 | 112.40 | 88.23 | 98.16 | 89.17 | 60.78 | 48.60 | 50.68 |
The cash conversion cycle of RPC, Inc. has demonstrated some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 93.78 days, showing a slight increase from the previous quarter. Compared to Q4 2022, there was a decrease in the cycle duration, indicating improvements in managing cash flows.
Overall, the trend in the cash conversion cycle has been relatively stable, with some fluctuations observed from quarter to quarter. It is essential for the company to continue monitoring and managing its cash conversion cycle effectively to optimize its working capital and liquidity position. Additionally, RPC, Inc. should focus on strategies to streamline its operational processes and enhance efficiency to potentially reduce the cash conversion cycle further in the future.