Upbound Group Inc. (UPBD)

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 0.17 0.22 0.23 0.21 0.16 0.26 0.22 0.41 0.34 0.39 0.27 0.22 0.31 0.32 0.28 0.23 0.42 0.48 0.47 0.56
Quick ratio 0.16 0.21 0.22 0.20 0.15 0.24 0.21 0.39 0.32 0.37 0.26 0.21 0.29 0.31 0.27 0.22 0.41 0.47 0.46 0.54
Cash ratio 0.16 0.21 0.22 0.20 0.15 0.24 0.21 0.39 0.32 0.37 0.26 0.21 0.29 0.31 0.27 0.22 0.41 0.47 0.46 0.54

For Upbound Group Inc., the liquidity ratios paint a concerning picture of the company's ability to meet its short-term obligations.

- The current ratio has shown a declining trend over the years, from 0.56 as of March 31, 2020, to 0.17 as of December 31, 2024. This indicates that the company may have difficulties covering its current liabilities with its current assets.

- Similarly, the quick ratio has also been decreasing steadily, from 0.54 on March 31, 2020, to 0.16 on December 31, 2024. This suggests that the company may struggle to pay off its short-term obligations without relying on inventory or other less liquid assets.

- The cash ratio, reflecting the most conservative measure of liquidity, has followed a similar downward trend, dropping from 0.54 on March 31, 2020, to 0.16 on December 31, 2024. This signifies a decreasing ability to meet short-term liabilities using only cash and cash equivalents.

Overall, the declining liquidity ratios indicate that Upbound Group Inc. may face liquidity challenges in the short term, which could potentially impact its operations and financial health. Management should closely monitor these ratios and take appropriate actions to improve the company's 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 0.90 0.94 0.95 1.06 1.19 1.03 0.93 1.08 1.18 1.11 0.92 0.81 1.00 1.28 1.24 1.51 1.74 1.41 1.47 1.83

The cash conversion cycle of Upbound Group Inc. has shown a general decreasing trend over the past few years. From March 31, 2020, where it stood at 1.83 days, the cycle steadily decreased to reach its lowest point of 0.90 days by December 31, 2024. This indicates that the company is managing its cash efficiently and optimizing its working capital by reducing the time it takes to convert its inventory and receivables into cash.

A lower cash conversion cycle suggests that Upbound Group Inc. is able to collect cash from its customers quickly, pay its suppliers promptly, and efficiently manage its inventory levels. This can be a positive sign of the company's liquidity and operational efficiency. However, it is important for the company to maintain a balance in the cash conversion cycle to ensure that it is neither too low, which may indicate aggressive management leading to insufficient inventory or strained supplier relationships, nor too high, which may point to inefficiencies in working capital management. Overall, the decreasing trend in the cash conversion cycle for Upbound Group Inc. indicates effective cash management practices.