Synnex Corporation (SNX)
Liquidity ratios
| Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 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 | 1.24 | 1.25 | 1.26 | 1.22 | 1.20 | 1.23 | 1.26 | 1.25 | 1.25 | 1.26 | 1.25 | 1.25 | 2.40 | 1.70 | 1.71 | 1.56 | 1.52 | 1.52 | 1.64 | 1.62 |
| Quick ratio | 0.66 | 0.68 | 0.68 | 0.65 | 0.68 | 0.65 | 0.63 | 0.61 | 0.53 | 0.57 | 0.61 | 0.65 | 1.57 | 0.96 | 0.96 | 0.97 | 0.89 | 0.83 | 0.85 | 0.90 |
| Cash ratio | 0.06 | 0.05 | 0.08 | 0.07 | 0.06 | 0.08 | 0.04 | 0.03 | 0.02 | 0.04 | 0.03 | 0.07 | 1.01 | 0.39 | 0.36 | 0.28 | 0.26 | 0.21 | 0.07 | 0.05 |
The current ratio of Synnex Corporation has shown some fluctuations over the years, ranging from a low of 1.20 to a high of 2.40. This ratio measures the company's ability to cover its short-term obligations with its current assets. Generally, a ratio above 1 indicates that the company has enough current assets to cover its current liabilities. However, a declining trend in the current ratio may signal potential liquidity issues in meeting short-term obligations.
The quick ratio, which excludes inventory from current assets, provides a more stringent measure of liquidity. Synnex Corporation's quick ratio has also varied, with values between 0.53 and 1.57. A quick ratio above 1 suggests that the company can meet its short-term liabilities without relying on selling inventory. A decreasing trend in the quick ratio may indicate possible difficulties in meeting immediate obligations.
The cash ratio, which only considers cash and cash equivalents, reflects Synnex Corporation's ability to cover immediate liabilities. The company's cash ratio has fluctuated between 0.02 and 1.01, showing significant variability. A higher cash ratio signifies a stronger ability to pay off short-term obligations with readily available cash. However, a low cash ratio may indicate a reliance on non-cash current assets to meet immediate financial needs.
In conclusion, while Synnex Corporation has shown some variability in its liquidity ratios, it is essential to closely monitor these metrics to ensure the company's ability to meet its short-term obligations efficiently and effectively.
Additional liquidity measure
| Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 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 | 19.03 | 21.58 | 22.27 | 20.49 | 22.27 | 21.17 | 26.01 | 24.41 | 23.02 | 24.75 | 35.89 | 29.73 | 30.54 | 26.00 | 31.29 | 49.99 | 53.82 | 49.77 | 55.63 | 48.52 |
The cash conversion cycle of Synnex Corporation has shown fluctuations over the past few years. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A lower cash conversion cycle is generally favorable as it indicates that the company is efficiently managing its working capital.
In November 2019, the cash conversion cycle was 48.52 days, which increased to 55.63 days by February 2020. Subsequently, the cycle decreased to 49.77 days by May 2020 and rose again to 53.82 days by August 2020. However, there was a positive trend starting from November 2020, where the cycle decreased continuously, reaching its lowest point of 19.03 days by November 2024.
Overall, the downward trend in the cash conversion cycle from November 2020 to November 2024 suggests that Synnex Corporation improved its efficiency in managing its working capital and converting inventory investments into cash more quickly. This may indicate better inventory management, faster collection of receivables, or more efficient payment of payables. A shorter cash conversion cycle can lead to improved cash flows and working capital management, which can positively impact the company's financial performance.