Sensata Technologies Holding NV (ST)
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 | 2.55 | 2.86 | 2.81 | 2.38 | 2.35 | 2.98 | 3.52 | 3.68 | 3.68 | 3.98 | 3.80 | 4.02 | 1.99 | 4.33 | 2.46 | 3.17 | 3.10 | 3.14 | 3.13 | 2.96 |
| Quick ratio | 1.52 | 1.90 | 1.85 | 1.62 | 1.67 | 2.02 | 2.59 | 2.74 | 2.82 | 3.16 | 3.05 | 3.28 | 1.63 | 3.47 | 1.82 | 2.16 | 2.10 | 2.12 | 2.16 | 2.02 |
| Cash ratio | 0.62 | 1.02 | 0.97 | 0.93 | 1.04 | 1.22 | 1.76 | 1.91 | 2.04 | 2.36 | 2.22 | 2.45 | 1.25 | 2.57 | 1.34 | 1.29 | 1.22 | 1.16 | 1.15 | 1.02 |
Sensata Technologies Holding Plc has maintained a relatively stable current ratio over the past eight quarters, ranging from 2.38 to 2.86, with an average of approximately 2.66. This indicates the company's ability to meet its short-term obligations using its current assets.
The quick ratio, which excludes inventory from current assets, also shows stability over the same period, with values between 1.69 and 2.07. This ratio suggests that Sensata Technologies Holding Plc has a strong ability to cover its short-term liabilities with its most liquid assets.
The cash ratio, which provides the most conservative measure of a company's liquidity, has also remained relatively consistent for Sensata Technologies, ranging from 0.78 to 1.19. This indicates that the company has a moderate amount of cash and cash equivalents compared to its current liabilities.
Overall, Sensata Technologies Holding Plc's liquidity ratios demonstrate a solid financial position, with the company maintaining sufficient liquidity to meet its short-term obligations across the analyzed quarters.
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 | 100.28 | 93.60 | 89.63 | 88.62 | 85.62 | 93.98 | 90.09 | 91.02 | 84.04 | 84.05 | 76.03 | 80.06 | 78.94 | 90.08 | 94.81 | 85.66 | 79.89 | 85.31 | 84.78 | 84.87 |
The cash conversion cycle of Sensata Technologies Holding Plc has exhibited some fluctuations over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, the cash conversion cycle increased to 97.21 days, indicating that the company took longer to convert its investments into cash compared to the previous quarter. This could be attributed to factors such as increased inventory levels or a slowdown in sales collections.
Comparing the Q4 2023 figure to the same quarter in the previous year, there has been an upward trend in the cash conversion cycle, suggesting potential challenges in efficiently managing working capital and converting assets into cash.
Overall, Sensata Technologies Holding Plc should focus on optimizing its inventory management, improving accounts receivable collections, and streamlining its payables process to shorten the cash conversion cycle and enhance cash flow efficiency.