Rollins Inc (ROL)

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 0.71 0.82 0.81 0.79 0.71 0.78 0.98 1.03 0.72 0.78 0.73 0.66 0.67 0.71 0.76 0.73 0.76 0.79 0.77 0.82
Quick ratio 0.56 0.65 0.64 0.67 0.58 0.66 0.82 0.88 0.55 0.62 0.28 0.27 0.25 0.24 0.32 0.26 0.58 0.63 0.61 0.68
Cash ratio 0.18 0.25 0.27 0.26 0.19 0.26 0.45 0.54 0.21 0.25 0.25 0.23 0.21 0.20 0.28 0.22 0.23 0.25 0.24 0.33

Rollins, Inc.'s liquidity ratios indicate the company's ability to meet its short-term obligations.

The current ratio has been fluctuating over the past eight quarters, ranging from 0.71 to 1.03. A current ratio below 1 suggests that the company may have difficulty covering its current liabilities with its current assets. Rollins, Inc. has generally maintained a current ratio below 1, which may raise concerns about its short-term liquidity position.

The quick ratio, which excludes inventory from current assets, has also shown variability from 0.65 to 0.97 over the same period. This ratio is often considered a more stringent measure of liquidity than the current ratio. A quick ratio below 1 indicates that the company may struggle to pay off its current liabilities without relying on the sale of inventory.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, paints a similar picture of fluctuation, ranging from 0.26 to 0.63. A cash ratio under 1 implies that the company does not have enough cash to cover its short-term obligations outright.

Overall, Rollins, Inc. appears to have struggled with maintaining a strong liquidity position, as evidenced by the downward trend in these liquidity ratios over the past quarters. This suggests that the company may face challenges in meeting its short-term financial commitments if this trend continues.

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 23.35 27.44 20.97 23.70 23.57 26.19 24.40 22.86 22.49 25.94 -4.75 -2.79 -2.57 -2.82 -0.31 -2.00 20.48 23.25 21.59 20.14

The cash conversion cycle measures how long it takes a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally more favorable as it indicates that the company is efficiently managing its working capital.

In the case of Rollins, Inc., the trend in the cash conversion cycle shows some variability over the past eight quarters. The Q2 2023 and Q4 2022 had the lowest cash conversion cycles at 16.25 days and 22.00 days, respectively, indicating efficient management of working capital during those periods.

On the other hand, the Q3 2023 and Q3 2022 had relatively longer cash conversion cycles at 26.12 days and 23.97 days, respectively. This suggests a potential delay in converting investments into cash during those quarters.

Overall, Rollins, Inc. should aim to consistently reduce its cash conversion cycle to improve efficiency in its working capital management. Analyzing the underlying reasons for the fluctuations in the cycle could help the company identify areas for improvement and implement strategies to shorten the cycle further.