Tidewater Inc (TDW)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 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
Current ratio 2.11 2.29 1.90 1.80 1.78 1.73 1.99 1.84 1.94 1.88 1.76 2.46 2.17 1.17 2.18 2.11 2.12 2.70 2.92 2.73
Quick ratio 0.98 1.03 0.94 0.85 0.84 0.83 0.83 0.77 0.84 0.62 0.47 1.09 0.94 0.42 0.81 0.76 0.82 1.18 1.25 0.99
Cash ratio 0.98 1.03 0.94 0.85 0.84 0.83 0.83 0.77 0.84 0.62 0.47 1.09 0.94 0.42 0.81 0.76 0.82 1.18 1.25 0.99

The current ratio of Tidewater Inc has shown some fluctuations over the past few years, indicating the company's ability to cover its short-term obligations with its current assets. The ratio peaked at 2.92 in June 2020 and has since fluctuated between 1.17 and 2.46. The current ratio as of December 31, 2024, stands at 2.11, which indicates that the company has $2.11 in current assets for every $1 in current liabilities.

The quick ratio, which factors in only the most liquid current assets, such as cash and accounts receivable, has also shown variability. The ratio has ranged from 0.42 to 1.25, with a value of 0.98 as of December 31, 2024. This suggests that Tidewater Inc may face some challenges in meeting its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has followed a similar trend to the quick ratio. As of December 31, 2024, the cash ratio stands at 0.98, indicating that the company has $0.98 in cash and cash equivalents to cover $1 of current liabilities.

Overall, the liquidity ratios of Tidewater Inc demonstrate adequate short-term liquidity levels, with some fluctuations in the quick and cash ratios that may warrant further analysis to ensure the company's ability to meet its short-term obligations without relying heavily on inventory.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 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
Cash conversion cycle days 14.28 11.31 10.86 11.04 15.73 15.02 13.93 15.65 21.70 16.05 18.35 12.65 12.15 13.04 15.10 15.38 14.90 15.87 17.73 18.34

The cash conversion cycle of Tidewater Inc has shown fluctuations over the periods analyzed. The company's cash conversion cycle decreased from 18.34 days as of March 31, 2020, to 11.04 days as of March 31, 2024. This indicates that Tidewater has been able to manage its cash flow more efficiently over time.

The trend shows that Tidewater has been able to reduce the time it takes to convert its investments in inventory into cash. A lower cash conversion cycle is generally a positive indicator, as it implies that the company is able to generate cash quickly from its operational activities.

However, there were some variations in the cash conversion cycle throughout the periods studied, with some quarters showing an increase. For example, the cash conversion cycle increased from 12.65 days as of March 31, 2022, to 21.70 days as of December 31, 2022. This might suggest potential challenges in managing working capital during those specific periods.

Overall, Tidewater Inc's improving trend in its cash conversion cycle indicates a positive aspect of its operational efficiency and ability to manage its working capital effectively. Investors and stakeholders may view this trend favorably as it reflects the company's ability to optimize its cash flow processes.