Seagate Technology PLC (STX)

Liquidity ratios

	Jun 30, 2024	Mar 31, 2024	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
Current ratio	1.08	0.85	1.04	1.07	1.12	0.99	1.13	1.19	1.13	1.48	1.49	1.27	1.29	1.23	1.56	1.51	1.51	1.49	1.54	1.58
Quick ratio	0.61	0.41	0.55	0.58	0.61	0.48	0.59	0.59	0.62	0.40	0.98	0.34	0.81	0.41	0.69	0.63	0.63	0.60	0.65	0.70
Cash ratio	0.44	0.26	0.31	0.32	0.30	0.21	0.28	0.24	0.19	0.40	0.51	0.34	0.41	0.41	0.69	0.63	0.63	0.60	0.65	0.70

Seagate Technology PLC's liquidity ratios have shown some fluctuations over the past few quarters.

The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has generally been above 1, indicating a healthy level of liquidity. However, there have been some quarters where the current ratio dipped below 1, suggesting potential difficulties in meeting short-term obligations without relying on outside sources of financing.

The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Seagate's quick ratio has shown more variability, with some quarters falling below 0.5, indicating potential challenges in meeting short-term obligations without relying on the sale of inventory.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also exhibited variability. While Seagate's cash ratio has generally been below 0.5, indicating a reliance on non-cash current assets to meet short-term obligations, there have been some quarters where the ratio improved, suggesting a stronger position in terms of cash liquidity.

Overall, Seagate Technology PLC's liquidity ratios suggest that the company has generally maintained adequate liquidity levels to meet its short-term obligations. However, fluctuations in the ratios highlight the importance of closely monitoring the company's liquidity position and cash flow management.

Additional liquidity measure

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Cash conversion cycle	days	-5.12	-4.51	-0.94	7.65	13.48	17.34	37.33	33.18	27.44	-18.95	21.45	-24.08	16.67	-26.41	-18.82	-21.53	-29.61	-33.17	-33.91	-33.26

The cash conversion cycle of Seagate Technology PLC has shown fluctuation over the past several quarters. A negative cash conversion cycle indicates that the company is able to collect cash from its customers before it needs to pay its suppliers, which can be advantageous in terms of cash flow management.

Looking at the trend, the cash conversion cycle has generally been improving in recent quarters, transitioning from positive days to negative days. This suggests that Seagate Technology PLC has been effectively managing its cash flow by collecting payments from customers more efficiently and/or extending the time it takes to pay its suppliers.

However, it is important to note that there have been periods of volatility within the trend, with occasional spikes in the number of days in the cash conversion cycle. These spikes may indicate challenges in managing working capital efficiently during those specific quarters.

Overall, it appears that Seagate Technology PLC has been making efforts to optimize its cash conversion cycle, which is a positive sign for the company's working capital management. Continued monitoring and analysis of this metric will be beneficial to assess the effectiveness of the company's cash flow operations.