TTM Technologies Inc (TTMI)
Liquidity ratios
| 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 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.03 | 1.97 | 2.22 | 2.20 | 1.96 | 1.94 | 1.91 | 2.45 | 2.52 | 2.51 | 2.53 | 2.62 | 2.41 | 1.89 | 1.56 | 1.94 | 1.42 | 1.92 | 1.91 | 1.92 |
| Quick ratio | 1.23 | 1.17 | 1.31 | 0.66 | 1.15 | 0.45 | 0.37 | 0.88 | 1.66 | 1.62 | 1.69 | 1.78 | 1.61 | 1.00 | 0.93 | 0.91 | 0.95 | 1.27 | 0.46 | 0.39 |
| Cash ratio | 0.64 | 0.60 | 0.67 | 0.66 | 0.53 | 0.45 | 0.37 | 0.88 | 0.96 | 0.93 | 1.01 | 1.06 | 0.87 | 0.52 | 0.58 | 0.40 | 0.42 | 0.47 | 0.46 | 0.39 |
TTM Technologies Inc's liquidity ratios depict its ability to meet short-term obligations and operational needs. The current ratio has shown a fluctuating trend over the analyzed periods, ranging from 1.42 to 2.62. Overall, the company has maintained a healthy current ratio above 1, indicating that it has more than enough current assets to cover its current liabilities.
In contrast, the quick ratio, sometimes known as the acid-test ratio, fluctuated more significantly, ranging from a low of 0.37 to a high of 1.78. This ratio excludes inventory from current assets, providing a more conservative view of liquidity. TTM Technologies Inc's quick ratio indicates a varying ability to meet short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio, has also displayed fluctuations, ranging from 0.37 to 1.06. This ratio measures the company's ability to cover current liabilities with cash and cash equivalents alone. TTM Technologies Inc's cash ratio suggests a volatile cash position over the periods analyzed, impacting its ability to pay off short-term obligations solely with cash on hand.
Overall, TTM Technologies Inc's liquidity ratios suggest that while the company generally has enough current assets to cover short-term liabilities, its ability to meet obligations without relying on inventory or cash alone has shown some variability over the analyzed periods. Continued monitoring of these ratios is essential for assessing the company's short-term financial health and liquidity position.
Additional liquidity measure
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 12.73 | 7.33 | 8.58 | -22.36 | 4.32 | -32.13 | -35.79 | -42.19 | -9.12 | -10.56 | -8.76 | -5.52 | -3.81 | -7.10 | -5.77 | 3.31 | 2.31 | -16.77 | -47.98 | -44.19 |
TTM Technologies Inc's cash conversion cycle has shown fluctuations over the provided periods. The cash conversion cycle represents the time taken by a company to convert its investments in inventory and other resources into cash flows from sales.
In analyzing the data:
- In some quarters, such as Dec 31, 2023, and Jun 30, 2023, the cash conversion cycle is positive, indicating that TTM Technologies Inc is efficiently managing its working capital and converting its resources into cash quickly.
- Conversely, in other quarters, such as Mar 31, 2023, and Sep 30, 2022, the cash conversion cycle is negative, suggesting that the company is paying suppliers before receiving cash from customers, which may raise concerns about cash flow management.
- The cycle significantly improved from 2019 to 2022, with negative days indicating efficient cash flow management, but then worsened again in 2023. This fluctuation may indicate changes in the company's operations, market conditions, or internal processes.
Overall, TTM Technologies Inc's cash conversion cycle trend warrants further investigation to understand the specific factors driving the changes. Management should focus on maintaining an efficient cycle to optimize liquidity, working capital management, and overall financial health.