Trimble Inc (TRMB)
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 | 1.27 | 1.16 | 0.99 | 1.00 | 1.00 | 1.26 | 1.12 | 1.51 | 1.04 | 0.99 | 1.02 | 1.26 | 1.22 | 1.37 | 1.28 | 1.09 | 0.98 | 0.92 | 0.96 | 0.97 |
| Quick ratio | 0.41 | 0.52 | 0.48 | 0.14 | 0.13 | 0.16 | 0.18 | 0.70 | 0.19 | 0.21 | 0.24 | 0.29 | 0.27 | 0.45 | 0.41 | 0.23 | 0.18 | 0.15 | 0.17 | 0.18 |
| Cash ratio | 0.41 | 0.52 | 0.48 | 0.14 | 0.13 | 0.16 | 0.18 | 0.70 | 0.19 | 0.21 | 0.24 | 0.29 | 0.27 | 0.45 | 0.41 | 0.23 | 0.18 | 0.15 | 0.17 | 0.18 |
Trimble Inc's liquidity ratios show a fluctuating trend over the years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has shown improvement, reaching a peak of 1.51 on March 31, 2023. However, it decreased to 0.99 on September 30, 2024. The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows variability, with a notable increase to 0.70 on March 31, 2023, before decreasing to 0.48 on June 30, 2024.
The cash ratio, representing the company's ability to cover current liabilities with its most liquid assets, mirrors the pattern seen in the quick ratio. It peaked at 0.70 on March 31, 2023, but declined to 0.41 by December 31, 2024. Overall, Trimble Inc's liquidity ratios indicate some fluctuations in its ability to meet short-term obligations with its available assets, suggesting the need for continuous monitoring and management of its liquidity position.
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 | 54.88 | 50.32 | 56.80 | 55.00 | 57.56 | 64.12 | 92.43 | 100.12 | 92.87 | 86.88 | 81.22 | 87.37 | 81.63 | 75.13 | 71.37 | 75.99 | 79.06 | 83.30 | 87.96 | 81.17 |
The cash conversion cycle of Trimble Inc has shown fluctuations over the periods reported. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle for Trimble Inc ranged between a high of 100.12 days on March 31, 2023, and a low of 50.32 days on September 30, 2024. The company experienced a decreasing trend in the cash conversion cycle from March 2023 to December 2024, suggesting an improvement in its efficiency in managing cash flows related to its operations.
A lower cash conversion cycle indicates that Trimble Inc is able to collect cash from its sales quicker, manage its inventory efficiently, and negotiate better credit terms with suppliers. This could be a positive sign of effective working capital management and a potential indicator of overall financial health and operational efficiency.
However, it is important to note that a very low cash conversion cycle could also indicate aggressive sales practices or inadequate investment in inventory, which may not be sustainable in the long run. Overall, analyzing the cash conversion cycle alongside other financial metrics can provide a more comprehensive understanding of Trimble Inc's financial performance.