Bristow Group Inc (VTOL)

The liquidity ratios of Bristow Group Inc show a stable but somewhat declining trend over the years.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been consistently above 2 in recent years, indicating a healthy liquidity position. However, there was a slight decline from 2.02 in 2022 to 1.90 in 2024, which suggests a reduction in the company's short-term liquidity.

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 shown a decreasing trend from 0.92 in 2022 to 0.76 in 2024. This indicates that the company may have a more limited ability to cover its short-term obligations with its most liquid assets.

The cash ratio, which focuses solely on the company's cash and cash equivalents relative to its current liabilities, has followed a similar downward trend, from 0.92 in 2022 to 0.76 in 2024. This suggests that the company may have a decreasing ability to meet its short-term obligations using only its cash reserves.

Overall, while Bristow Group Inc continues to maintain a relatively strong liquidity position, the declining trend in its liquidity ratios over the years raises some concerns about its ability to quickly meet its short-term financial obligations in the future.

---

Additional liquidity measure

The cash conversion cycle of Bristow Group Inc has shown fluctuations over the years. As of December 31, 2021, the cash conversion cycle stood at 30.01 days, indicating that on average, it takes the company 30.01 days to convert its investments in inventory and other resources into cash flows from sales.

By March 31, 2022, the cash conversion cycle improved to 24.47 days, suggesting that the company was able to manage its working capital more efficiently and convert its assets into cash at a faster rate.

However, as of December 31, 2022, the cash conversion cycle increased slightly to 29.32 days, indicating that the company experienced some delays in converting its investments into cash during that period.

The trend took a significant negative turn by December 31, 2023, when the cash conversion cycle spiked to 66.52 days. This substantial increase could suggest issues with managing inventory, collecting receivables, or other working capital challenges.

By December 31, 2024, the cash conversion cycle further deteriorated to 78.56 days, indicating a prolonged period for the company to convert its resources into cash. This protracted cycle could have adverse effects on liquidity and operational efficiency.

Overall, Bristow Group Inc's cash conversion cycle has shown variability over the years, with some periods of improvement and others of deterioration. More attention may be needed to address working capital management practices and streamline the conversion of assets into cash to enhance overall financial performance.