Bristow Group Inc (VTOL)

Based on the provided data, we can analyze the liquidity ratios of Bristow Group Inc over the given period.

1. Current Ratio: This ratio measures the company's ability to pay off its short-term obligations with its current assets. A current ratio above 1 indicates a company has more current assets than current liabilities. Bristow Group Inc's current ratio fluctuated over the period, ranging from a low of 1.73 to a high of 4.03. Generally, a current ratio above 2 is considered healthy, and Bristow's ratio stayed mostly above this threshold, indicating a strong ability to meet short-term obligations.

2. Quick Ratio: Also known as the Acid-Test ratio, it provides a more stringent measure of liquidity by excluding inventory from current assets. Bristow Group Inc's quick ratio ranged from 0.46 to 2.36 during the period, with a general decreasing trend over time. A quick ratio above 1 is usually preferred, suggesting that the company can meet its short-term liabilities without relying on selling inventory. Bristow's ratio, although fluctuating, generally remained above 1 until mid-2023, indicating a decent ability to cover short-term obligations.

3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, focusing only on cash and cash equivalents to cover current liabilities. Bristow Group Inc's cash ratio mirrored its quick ratio trend, declining from 2.36 to 0.76 during the period. A cash ratio above 0.5 is considered acceptable, signifying a company can cover its short-term liabilities with cash on hand. While Bristow's cash ratio decreased over time, it mostly stayed above this threshold, suggesting a stable cash position.

In summary, Bristow Group Inc maintained healthy liquidity levels during the analyzed period, with its current, quick, and cash ratios generally indicating a strong ability to meet short-term obligations. However, the declining trend in quick and cash ratios towards the end of the period may warrant closer monitoring to ensure continued liquidity strength.

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Additional liquidity measure

The cash conversion cycle for Bristow Group Inc has fluctuated over the periods analyzed. Starting at a relatively low level of 6.66 days on March 31, 2020, the company's cash conversion cycle increased significantly to 78.56 days by December 31, 2024. This indicates that, on average, it took the company a progressively longer time to convert its investments in inventory into cash generated from sales over the years.

A decreasing trend occurred from March 31, 2023 to March 31, 2024, where the cash conversion cycle improved from 35.43 days to 45.84 days. However, the following periods witnessed a significant deterioration, with the cycle peaking at 78.56 days as of December 31, 2024.

The cash conversion cycle is a crucial metric in assessing a company's efficiency in managing its working capital. A longer cash conversion cycle may suggest inefficiencies in inventory management, accounts receivable collection, or accounts payable. It is essential for Bristow Group Inc to closely monitor and manage its cash conversion cycle to ensure optimal utilization of its resources and maintain liquidity in the business operations.