Tidewater Inc (TDW)
Liquidity ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.29 | 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 |
| Quick ratio | 1.02 | 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 |
| Cash ratio | 1.03 | 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 |
Based on the provided data on Tidewater Inc's liquidity ratios, we can make the following observations:
1. Current Ratio: Tidewater Inc's current ratio has experienced fluctuations over the periods, ranging from a low of 1.17 to a high of 2.46. In more recent periods, the current ratio has shown a decreasing trend, indicating a potential decrease in the company's ability to cover its short-term obligations with its current assets. Generally, a current ratio above 1.0 is considered healthy, but fluctuations may signal changing liquidity risks.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its most liquid assets. Tidewater Inc's quick ratio has also varied significantly over the periods, ranging from 0.40 to 1.67. A quick ratio below 1.0 suggests potential difficulties in meeting short-term obligations without relying on inventory sales, and Tidewater Inc has shown some periods with quick ratios below this threshold.
3. Cash Ratio: The cash ratio indicates the extent to which a company can cover its current liabilities with its cash and cash equivalents alone. Tidewater Inc's cash ratio has fluctuated between 0.42 and 1.25 over the periods, showing variability in its ability to cover short-term liabilities with cash on hand. Similar to the quick ratio, a cash ratio below 1.0 may indicate a reliance on other liquid assets to meet short-term obligations.
In summary, Tidewater Inc has shown varying levels of liquidity over the periods analyzed, with fluctuations in its current, quick, and cash ratios. These ratios suggest that the company may face liquidity challenges in some periods, highlighting the importance of monitoring its ability to meet short-term obligations with available liquid assets.
Additional liquidity measure
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -22.78 | -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 |
The cash conversion cycle of Tidewater Inc shows a fluctuating trend over the past several quarters, with some periods reflecting negative values while others are positive. A negative cash conversion cycle indicates that the company is able to convert its resources into cash quickly, which can be a positive sign of operational efficiency.
In the most recent quarter, ending September 30, 2024, Tidewater Inc had a cash conversion cycle of -22.78 days, suggesting that the company is effectively managing its working capital to generate cash flow. This improvement from the previous quarter's figure of -12.34 days indicates a more efficient conversion of inventory, accounts receivable, and accounts payable into cash.
On the other hand, looking back at the data from previous quarters, there have been periods where the cash conversion cycle was positive, indicating a longer period required to convert resources into cash. For example, in the quarters ending December 31, 2021, and September 30, 2021, the cash conversion cycle was quite lengthy at 72.06 days and 89.93 days, respectively.
Overall, the trend in Tidewater Inc's cash conversion cycle is showing signs of improvement, with recent quarters reflecting shorter cycles or even negative cycles, indicating efficient management of working capital. Monitoring this metric over time can provide insights into the company's liquidity management and operational effectiveness.