Resideo Technologies Inc (REZI)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.80 | 1.78 | 1.72 | 1.70 | 1.62 | 1.59 | 1.57 | 1.51 | 1.70 | 1.64 | 1.56 | 1.54 | 1.45 | 1.17 | 1.11 | 1.14 | 1.19 | 1.19 | 1.18 | 1.19 |
| Quick ratio | 1.06 | 0.94 | 0.95 | 0.88 | 0.87 | 0.18 | 0.16 | 0.16 | 1.11 | 0.45 | 0.38 | 0.35 | 0.90 | 0.70 | 0.64 | 0.66 | 0.63 | 0.63 | 0.63 | 0.67 |
| Cash ratio | 0.42 | 0.27 | 0.27 | 0.21 | 0.23 | 0.18 | 0.16 | 0.16 | 0.52 | 0.45 | 0.38 | 0.35 | 0.34 | 0.16 | 0.22 | 0.19 | 0.08 | 0.09 | 0.09 | 0.14 |
The liquidity ratios of Resideo Technologies Inc have shown generally positive trends over the past eight quarters. The current ratio, measuring the company's ability to cover its short-term obligations with current assets, has consistently improved, reaching 1.80 in Q4 2023 from 1.51 in Q1 2022. This indicates an increasing capacity to meet short-term obligations.
Similarly, the quick ratio, which excludes inventory from current assets to provide a more stringent measure of liquidity, has also shown improvement over the same period. The ratio increased from 0.92 in Q1 2022 to 1.18 in Q4 2023, reflecting a strengthening ability to cover immediate liabilities with more liquid assets.
The cash ratio, the most stringent liquidity measure as it only considers cash and cash equivalents, has also demonstrated positive growth, rising from 0.26 in Q1 2022 to 0.54 in Q4 2023. This suggests an enhanced ability to settle short-term obligations solely with available cash on hand.
Overall, the increasing trends seen in Resideo Technologies Inc's liquidity ratios indicate a strengthening liquidity position, which may imply improved financial stability and operational flexibility for the company.
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 59.81 | 65.36 | 64.25 | 64.11 | 63.19 | 1.38 | -1.07 | -2.48 | 45.35 | -13.39 | -16.01 | -17.53 | 40.04 | 45.58 | 37.07 | 42.27 | 41.72 | 46.48 | 38.39 |
The cash conversion cycle of Resideo Technologies Inc has been relatively stable over the past eight quarters, ranging from a low of 58.96 days in Q1 2022 to a high of 66.13 days in Q3 2023. The company's cash conversion cycle measures the time it takes to convert its resources invested in inventory into cash flows from sales, reflecting the efficiency of its working capital management.
The increase in the cash conversion cycle from Q1 2022 to Q3 2023 indicates that Resideo Technologies Inc may be taking longer to sell its inventory and collect cash from customers. This could be due to factors such as slower sales, delays in receiving payments from customers, or challenges in managing inventory levels effectively.
Overall, Resideo Technologies Inc should continue to monitor and analyze its cash conversion cycle to identify opportunities for improvement in working capital management, which can lead to enhanced liquidity and financial performance.