TTM Technologies Inc (TTMI)

TTM Technologies Inc's liquidity ratios over the past five years indicate the company's ability to meet its short-term obligations.
1. Current Ratio: The company's current ratio has fluctuated between 1.96 and 2.52, indicating that TTM Technologies has generally maintained a healthy level of current assets to cover its current liabilities. A ratio above 1 suggests the company can meet its short-term obligations.

2. Quick Ratio: TTM Technologies' quick ratio has varied between 0.53 and 0.96, showing some fluctuation in its ability to meet short-term obligations using its most liquid assets. A quick ratio above 1 is usually seen as positive, suggesting the company has enough liquid assets to cover its short-term liabilities.

3. Cash Ratio: The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also fluctuated between 0.53 and 0.96. This ratio provides insight into the company's immediate liquidity position and ability to handle short-term debt obligations.

Overall, TTM Technologies Inc has maintained reasonable liquidity levels over the analyzed period, with adequate current assets to meet its short-term obligations. However, the fluctuations in the quick and cash ratios suggest some variability in the company's ability to quickly cover its liabilities with its most liquid assets.

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Additional liquidity measure

The cash conversion cycle of TTM Technologies Inc has shown fluctuations over the years, indicating changes in its efficiency in managing cash flows. As of December 31, 2020, the company's cash conversion cycle was 24.17 days, which increased slightly to 24.82 days by December 31, 2021. However, there was a more significant increase to 30.57 days by December 31, 2022, suggesting a potential slowdown in converting resources into cash.

By December 31, 2023, the cash conversion cycle further extended to 42.75 days, indicating a longer period for the company to convert its investments into cash. This prolonged cycle may raise concerns about liquidity and operational efficiency. Subsequently, by December 31, 2024, the cash conversion cycle decreased slightly to 41.78 days, but it remains higher than the levels observed in previous years.

Overall, the trend in TTM Technologies Inc's cash conversion cycle shows variability and an upward trajectory, which could imply challenges in managing working capital effectively. Further analysis of the company's operational and financial strategies may be warranted to address and improve its cash conversion cycle performance over time.