Bristow Group Inc (VTOL)

The liquidity ratios of Bristow Group Inc, as indicated by the current ratio, quick ratio, and cash ratio over the past five periods, provide insight into the company's ability to meet its short-term obligations with its current assets.

1. Current Ratio:
- The current ratio measures the extent to which current assets cover current liabilities. Bristow Group Inc's current ratio has fluctuated over the five periods, ranging from 1.82 to 3.86, with the highest level recorded in Dec 2019. This indicates that the company had more current assets to cover its current liabilities during that period. However, the ratio has generally decreased over time, implying a potentially decreasing ability to meet short-term obligations.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Bristow Group Inc's quick ratio has varied significantly, from 0.55 to 2.37, with the lowest level observed in Dec 2022 and the highest level in Dec 2019. The sharp fluctuations suggest potential variability in the company's ability to meet immediate obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio specifically assesses the company's ability to cover its current liabilities with its most liquid assets, cash, and cash equivalents. Bristow Group Inc's cash ratio has also shown fluctuations over the five periods, ranging from 0.56 to 2.31, with the lowest level in Dec 2019. The trend indicates that the company had a relatively lower proportion of cash to cover its short-term obligations in recent years.

Overall, the liquidity ratios of Bristow Group Inc highlight the company's ability to meet short-term obligations with its current assets. The decreasing trend in the current ratio and the fluctuations in the quick ratio and cash ratio suggest potential changes in the company's liquidity position over the analyzed periods. Further analysis of the company's operating cash flows and working capital management could provide additional insights into its liquidity performance.

---

Additional liquidity measure

The cash conversion cycle of Bristow Group Inc has varied significantly over the past few years. As of December 31, 2023, the company's cash conversion cycle stands at 74.85 days, indicating that it takes approximately 74.85 days for the company to convert its investments in inventory and accounts receivable into cash.

It is noteworthy that in December 2022, the cash conversion cycle was negative at -543.52 days. This suggests that during that period, the company was able to collect cash from its sales before having to pay for the inventory and accounts payable, a favorable situation for the company from a liquidity perspective.

Looking back at March 31, 2022, and March 31, 2021, the cash conversion cycle was 24.47 days and 21.28 days respectively. This indicates that the company was efficient in managing its working capital during those periods, with a relatively quick turnaround in converting its investments into cash.

However, in December 2019, the cash conversion cycle was substantially higher at 169.42 days, indicating a longer period for the company to convert its investments into cash compared to the more recent years.

Overall, the trend in Bristow Group Inc's cash conversion cycle demonstrates fluctuations over the years, with both positive and negative cycles observed. It is important for the company to closely monitor and manage its working capital efficiency to ensure optimal cash flow management and operational liquidity.