STAAR Surgical Company (STAA)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 5.23 | 5.62 | 6.03 | 5.56 | 5.25 |
| Quick ratio | 3.28 | 3.39 | 4.09 | 4.09 | 3.70 |
| Cash ratio | 3.28 | 3.39 | 4.09 | 4.09 | 3.70 |
STAAR Surgical Company has exhibited strong liquidity based on its current ratio, which has shown a consistent increasing trend over the years from 5.25 in 2020 to 5.23 in 2024. This indicates that the company has more than sufficient current assets to cover its current liabilities.
Similarly, the quick ratio has also been stable and relatively high, ranging from 3.28 to 4.09, suggesting that STAAR Surgical Company has an adequate level of liquid assets, excluding inventory, to meet its short-term obligations.
The cash ratio, reflecting the company's ability to meet its current liabilities using only its cash and cash equivalents, has also remained steady and relatively strong over the years, ranging from 3.28 to 4.09. This indicates that the company has a sufficient cash buffer to cover its immediate financial commitments.
Overall, the liquidity ratios of STAAR Surgical Company demonstrate a sound financial position with ample short-term liquidity to support its operations and meet its obligations.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 212.68 | 183.80 | 144.55 | 121.64 | 146.58 |
STAAR Surgical Company's cash conversion cycle, a measure of how long it takes to convert resources into cash flow, has shown some fluctuations over the years.
As of December 31, 2020, the cash conversion cycle was 146.58 days, which decreased to 121.64 days by the end of December 31, 2021, indicating an improvement in efficiency in managing cash flows and working capital.
However, by December 31, 2022, the cash conversion cycle slightly increased to 144.55 days, signaling a potential slowdown in the company's ability to convert resources into cash.
The trend worsened by December 31, 2023, with the cash conversion cycle reaching 183.80 days, representing a significant delay in converting resources into cash flow compared to the prior years.
By December 31, 2024, the cash conversion cycle further increased to 212.68 days, indicating a continued challenge in efficiently managing working capital and cash flows.
Overall, the fluctuating cash conversion cycle of STAAR Surgical Company suggests varying levels of efficiency in managing resources and cash flow over the years, which may require closer monitoring and potential operational adjustments to improve working capital management.