Simulations Plus Inc (SLP)
Liquidity ratios
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.26 | 11.98 | 8.81 | 15.10 | 10.88 | 15.22 | 21.91 | 18.50 | 18.98 | 24.49 | 15.95 | 14.55 | 12.04 | 18.90 | 20.72 | 23.96 | 23.45 | 2.85 | 4.50 | 4.10 |
| Quick ratio | 2.44 | 11.41 | 8.37 | 14.47 | 10.48 | 14.70 | 21.12 | 17.82 | 18.36 | 23.79 | 15.50 | 14.16 | 11.53 | 18.08 | 19.73 | 23.02 | 22.42 | 2.34 | 3.56 | 3.37 |
| Cash ratio | 1.68 | 10.51 | 7.47 | 13.26 | 9.63 | 13.56 | 19.22 | 16.36 | 16.58 | 20.65 | 13.83 | 12.93 | 10.68 | 16.32 | 18.00 | 21.68 | 21.07 | 0.94 | 2.23 | 2.24 |
Simulations Plus Inc's liquidity ratios have shown strong improvements over the past few quarters. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has consistently been above 1, indicating a healthy liquidity position. The current ratio has shown a fluctuating trend, with significant increases seen in the most recent quarters, reaching levels above 15, which indicates a substantial increase in current assets relative to current liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has followed a similar trend to the current ratio, remaining well above the ideal threshold of 1. This suggests that the company has a strong ability to cover its short-term liabilities with more liquid assets.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has also shown a positive trend, with significant improvements in recent quarters. The cash ratio has been consistently above 1, indicating that Simulations Plus Inc has enough cash on hand to cover its current liabilities.
Overall, based on the current, quick, and cash ratios, Simulations Plus Inc appears to have a very strong liquidity position, with ample resources to meet its short-term financial obligations.
Additional liquidity measure
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 59.79 | 44.84 | 65.84 | 53.29 | 83.21 | 55.03 | 78.10 | 105.52 | 132.68 | 116.21 | 111.34 | 108.44 | 98.90 | 109.23 | 119.37 | 70.36 | 86.35 | 89.21 | 63.93 | 45.50 |
The cash conversion cycle of Simulations Plus Inc has shown some fluctuations over the past few quarters. The trend indicates that the company's management of its working capital and operating efficiency has varied.
On average, the company takes around 80 days to convert its investments in inventory and accounts receivable into cash. The cash conversion cycle decreased in the most recent quarter compared to the previous quarter, but it is still higher than historical lows. This indicates that the company may have improved its efficiency in managing inventory and collecting receivables recently.
Overall, a lower cash conversion cycle is generally seen as positive as it signifies that the company is able to generate cash quickly from its operational activities. It is essential for Simulations Plus Inc to continue monitoring and managing its working capital effectively to maintain a healthy cash conversion cycle.