EchoStar Corporation (SATS)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 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
Current ratio 1.39 0.67 0.40 0.44 0.61 6.23 6.02 5.76 5.03 5.02 4.51 4.56 4.19 4.01 3.54 2.03 2.04 2.10 2.08 6.20
Quick ratio 0.95 0.36 0.07 0.11 0.30 5.01 4.81 4.43 3.97 3.86 3.50 3.60 3.36 3.19 2.85 1.74 1.78 1.82 1.81 5.35
Cash ratio 0.95 0.36 0.07 0.11 0.30 5.01 4.81 4.43 3.97 3.86 3.50 3.60 3.36 3.19 2.85 1.74 1.78 1.82 1.81 5.35

EchoStar Corporation's liquidity ratios demonstrate a fluctuating trend over the reported periods. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, increased steadily from March 2020 to September 2023, indicating a strong ability to meet its short-term obligations. However, there was a significant decline in the current ratio in the last quarter of 2023 and throughout 2024, reaching extremely low levels by the end of 2024. It is crucial for EchoStar Corporation to monitor and manage its short-term assets and liabilities carefully to avoid potential liquidity issues in the future.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, showed a comparable pattern to the current ratio. The quick ratio maintained an upward trend until September 2023, indicating a favorable liquidity position. Nevertheless, the quick ratio also experienced a sharp decline in the last quarter of 2023 and throughout 2024, raising concerns about the company's ability to meet its immediate financial obligations without relying on inventory.

The cash ratio, which specifically focuses on the company's ability to cover its current liabilities with cash and cash equivalents, followed a similar trajectory to the current and quick ratios. The cash ratio exhibited a steady increase in liquidity until September 2023, after which there was a notable decrease in the last quarter of 2023 and throughout 2024. This decline suggests that EchoStar Corporation may have difficulties in meeting its short-term obligations solely with cash reserves in the future.

In conclusion, while EchoStar Corporation demonstrated strong liquidity positions in previous periods, the significant decline in liquidity ratios towards the end of 2023 and throughout 2024 raises concerns about its short-term financial health. The company should closely monitor its liquidity levels and take proactive measures to manage its working capital efficiently to avoid potential liquidity challenges.


Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 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
Cash conversion cycle days 13.58 7.36 10.69 14.18 18.54 95.97 67.98 59.89 52.33 49.32 48.28 49.21 48.01 49.03 46.73 47.74 48.05 44.84 39.38 40.32

The cash conversion cycle of EchoStar Corporation has shown fluctuations over the periods provided in the data. The company's cash conversion cycle, which represents the time it takes for a company to convert its resources into cash flows, decreased from 40.32 days as of March 2020 to 7.36 days as of September 2024. This indicates that EchoStar has improved its efficiency in managing its resources and collecting cash from its operations.

However, the cycle increased again to 13.58 days by the end of December 2024. The significant drop in the cash conversion cycle observed in March 2024, June 2024, and September 2024 suggests the company may have implemented more effective cash management practices or streamlined its operations. On the other hand, the sudden increase in the cycle by the end of December 2024 could be a result of various factors such as changes in sales patterns, inventory management, or payment terms with customers and suppliers.

Overall, monitoring the cash conversion cycle is crucial for evaluating EchoStar's operational efficiency and liquidity management. Investors and analysts should continue to monitor this metric to assess the company's ability to generate cash flows and sustain its operations effectively.