Veeco Instruments Inc (VECO)

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 3.24 2.69 2.51 2.41 2.59 2.50 2.84 2.58 2.90 3.49 3.56 3.78 4.00 3.90 4.22 3.89 4.03 3.42 3.29 3.32
Quick ratio 1.87 1.53 1.48 1.40 1.65 1.59 1.78 1.56 1.76 2.34 2.46 2.57 2.72 2.65 2.88 2.54 2.45 2.14 2.05 2.08
Cash ratio 1.40 1.07 1.01 0.95 1.17 1.04 1.15 1.05 1.18 1.79 1.84 2.00 2.18 2.10 2.36 1.88 2.07 1.63 1.65 1.58

The liquidity ratios of Veeco Instruments Inc have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 2, indicating a healthy level of liquidity. The ratio saw an improvement in Q4 2023, reaching 3.24, which is the highest level in the provided period.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrates a similar trend, staying above 1.5 in most quarters. The company's ability to meet its short-term obligations without relying on inventory improved in Q4 2023, with a quick ratio of 2.15, indicating a solid liquidity position.

The cash ratio, which is the most conservative measure of liquidity focusing solely on cash and cash equivalents compared to current liabilities, has generally been above 1, suggesting that Veeco Instruments Inc has sufficient cash to cover its short-term liabilities. The cash ratio increased in Q4 2023 to 1.68, reflecting an enhanced ability to pay off immediate obligations with available cash reserves.

Overall, the liquidity ratios of Veeco Instruments Inc demonstrate a strong and improving liquidity position, with increasing levels of current assets and liquid resources relative to short-term liabilities over the analyzed period, which may indicate the company's ability to meet its financial obligations effectively.

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 205.11 215.39 214.12 193.29 188.72 187.22 178.72 171.78 178.00 171.02 178.31 184.82 183.56 188.08 175.30 170.21 152.13 161.64 158.98 115.74

Veeco Instruments Inc's cash conversion cycle has shown a fluctuating trend over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 243.29 days compared to the previous quarter, Q3 2023, where it was 252.24 days. This indicates that Veeco is taking slightly less time to convert its investments in inventory into cash receipts from sales.

Looking further back, the trend shows an overall increasing cycle length, with occasional fluctuations. In Q2 2023, the cash conversion cycle was 248.93 days, showing a slight decrease in comparison to Q1 2023, where the cycle was 223.76 days. Despite these fluctuations, the trend suggests that Veeco's efficiency in managing its inventory turnover and collection of receivables has been improving over time.

Comparing to the same quarter in the previous year, there has been a general uptrend in the cash conversion cycle. For instance, in Q4 2022, the cycle was 217.76 days, which shows an increase compared to Q4 2023. This indicates that the company may be facing challenges in efficiently managing its working capital and liquidity over the year.

Overall, Veeco Instruments Inc's cash conversion cycle has shown variability quarter to quarter but with a general increasing trend in the past year. The company may need to focus on optimizing its inventory levels and enhancing its receivables collection process to improve efficiency and maintain healthy cash flow.