Tidewater Inc (TDW)
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 | 1.90 | 1.81 | 1.80 | 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 | 2.89 | 4.03 |
| Quick ratio | 0.92 | 0.83 | 0.84 | 0.83 | 0.83 | 0.77 | 0.79 | 0.56 | 0.40 | 1.15 | 0.94 | 0.65 | 1.21 | 1.13 | 1.20 | 1.58 | 1.66 | 1.67 | 1.87 | 3.04 |
| Cash ratio | 0.93 | 0.83 | 0.83 | 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 | 1.18 | 2.26 |
The liquidity ratios of Tidewater Inc, as depicted in the table, reflect the company's ability to meet its short-term financial obligations.
The current ratio has shown fluctuations over the periods analyzed, ranging from a low of 1.17 to a high of 2.92. This ratio indicates that for every dollar of current liabilities, Tidewater had assets readily available to cover the obligation. A current ratio above 1 signifies the company's short-term solvency. Tidewater maintained a current ratio above 1 in all periods, with the highest being in June 2020 at 4.03, indicating strong short-term liquidity.
In contrast, the quick ratio, also known as the acid-test ratio, paints a more conservative picture of liquidity. This ratio factors in only the most liquid assets (such as cash and accounts receivable) in comparison to current liabilities. Tidewater's quick ratio fluctuated between 0.40 and 1.66, with the lowest value in September 2022. The quick ratio generally remained below 1, which might indicate a potential risk in meeting short-term obligations without relying on inventory or other less liquid assets.
Similarly, the cash ratio, the most stringent measure of liquidity, considers only cash and cash equivalents in comparison to current liabilities. Tidewater's cash ratio varied from 0.42 to 2.26, reflecting the company's ability to cover its short-term liabilities with cash on hand. The cash ratio was typically below 1, indicating that cash alone may not be sufficient to meet all short-term obligations.
Overall, while the current ratio suggests a strong short-term solvency position for Tidewater Inc, the quick and cash ratios highlight that the company may have some dependency on less liquid assets to meet immediate financial obligations. Continued monitoring of these ratios is advisable to ensure the company's liquidity remains stable.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -12.34 | -10.77 | -4.42 | -14.01 | -24.62 | -21.50 | -4.73 | -6.99 | -6.59 | 0.13 | -6.45 | 72.06 | 72.91 | 68.90 | 67.41 | 59.25 | 54.25 | 89.93 | 93.00 | 93.41 |
The cash conversion cycle of Tidewater Inc has shown fluctuating trends over the past several quarters. The company's cash conversion cycle measures the time it takes for Tidewater to convert its investments in raw materials and other resources into cash flows from sales. A negative cash conversion cycle implies that the company is able to collect cash from customers before paying its suppliers and effectively manage its working capital.
From the data provided, it can be observed that Tidewater Inc experienced a negative cash conversion cycle ranging from -24.62 days to -4.42 days across the quarters from Dec 2019 to Dec 2023. This indicates that the company was able to efficiently convert its investments into cash receipts during these periods.
However, there were instances where the cash conversion cycle turned positive. For example, in the quarters ending Sep 2021 and Jun 2021, the company had significantly high positive cash conversion cycles of 72.91 days and 72.06 days, respectively. This suggests that Tidewater may have faced challenges in managing its working capital effectively during those periods.
Overall, Tidewater Inc should continue monitoring and managing its cash conversion cycle to ensure efficient utilization of resources and maintain a healthy financial position.