EchoStar Corporation (SATS)
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 | 0.61 | 6.23 | 6.02 | 5.76 | 1.05 | 5.02 | 4.51 | 4.56 | 4.19 | 4.01 | 3.54 | 2.03 | 2.04 | 2.10 | 2.08 | 6.20 | 5.72 | 6.35 | 6.10 | 2.73 |
| Quick ratio | 0.44 | 5.97 | 5.66 | 5.41 | 0.59 | 4.84 | 4.41 | 4.55 | 4.10 | 3.99 | 3.53 | 1.99 | 1.92 | 1.98 | 1.96 | 5.84 | 5.43 | 6.06 | 5.87 | 2.66 |
| Cash ratio | 0.30 | 5.37 | 5.06 | 4.72 | 0.56 | 4.22 | 3.88 | 4.04 | 3.67 | 3.57 | 3.19 | 1.85 | 1.80 | 1.84 | 1.83 | 5.42 | 5.03 | 5.59 | 5.42 | 2.48 |
The liquidity ratios of EchoStar Corporation have shown significant variability over the past few quarters. In terms of the current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, there has been an inconsistent trend. The current ratio was relatively low in the most recent quarter at 0.61, indicating a potential liquidity strain. However, in the previous quarter, the ratio spiked to 6.23, reflecting a strong ability to meet short-term obligations.
The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also exhibited fluctuations. In the latest quarter, the quick ratio was 0.44, indicating a relatively low ability to meet immediate liabilities without relying on inventory. Nonetheless, there was a significant improvement in the quick ratio in the preceding quarter, reaching 5.97, suggesting enhanced liquidity.
The cash ratio, which focuses solely on cash and cash equivalents as a percentage of current liabilities, revealed a similar pattern of volatility. The cash ratio was 0.30 in the most recent quarter, demonstrating a limited ability to cover short-term obligations with cash alone. Conversely, in the quarter prior, the cash ratio stood at 5.37, reflecting a much stronger liquidity position driven by higher cash reserves.
Overall, EchoStar Corporation's liquidity ratios have shown erratic movements, indicating fluctuations in the company's ability to meet short-term obligations. It is essential for stakeholders to closely monitor these ratios to assess the company's liquidity health and risk exposure.
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 | 72.22 | 81.80 | 69.83 | 70.31 | -115.69 | 54.05 | 45.63 | 39.94 | 34.18 | 33.42 | 24.87 | 31.79 | 28.29 | 32.01 | 26.30 | 29.31 | 20.81 | 26.82 | 27.24 | 30.05 |
The cash conversion cycle of EchoStar Corporation has shown fluctuations over the past years, indicating changes in its efficiency in managing its working capital. A positive cash conversion cycle indicates that the company takes longer to convert its investments in inventory and accounts receivable into cash, which can tie up funds and impact liquidity.
From December 2019 to December 2023, the cash conversion cycle ranged from -115.69 days to 72.22 days. A negative cash conversion cycle, as seen in December 2022, indicates that the company was able to collect cash from customers before paying its suppliers, which can be a positive sign of operational efficiency.
The trend in recent quarters shows an improvement in the cash conversion cycle from negative territory towards a more stable positive cycle. It suggests that EchoStar Corporation has been managing its inventories, accounts receivables, and accounts payables more effectively to optimize cash flow.
Overall, a lower cash conversion cycle indicates that EchoStar Corporation is operating more efficiently in terms of managing its working capital and converting it into cash, which is a positive signal for the company's liquidity and financial health.