Bristow Group Inc (VTOL)
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 | 1.82 | 1.71 | 1.83 | 1.91 | 1.73 | 1.78 | 1.73 | 2.02 | 2.00 | 2.00 | 1.96 | 1.92 | 2.07 | 1.92 | 1.85 | 1.76 | 3.86 | 5.32 | 5.57 | 3.81 |
| Quick ratio | 1.25 | 1.22 | 0.72 | 0.72 | 0.55 | 0.67 | 0.75 | 0.92 | 0.94 | 0.84 | 0.89 | 0.88 | 1.02 | 0.86 | 1.00 | 0.67 | 2.37 | 4.04 | 3.97 | 2.68 |
| Cash ratio | 0.58 | 0.64 | 0.72 | 0.72 | 0.56 | 0.68 | 0.75 | 0.92 | 0.95 | 0.85 | 0.90 | 0.87 | 1.02 | 0.86 | 0.97 | 0.66 | 2.31 | 3.13 | 2.95 | 1.57 |
The liquidity ratios of Bristow Group Inc, as reflected in the current ratio, quick ratio, and cash ratio, have varied over the past five years.
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has shown some fluctuations. It ranged from a low of 1.71 in September 2023 to a high of 2.02 in March 2022. The current ratio has generally remained above 1, indicating that Bristow Group Inc has had sufficient current assets to meet its short-term liabilities.
On the other hand, the quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has shown more variability, ranging from a low of 0.55 in December 2020 to a high of 1.25 in December 2023. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations without relying on inventory sales.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also fluctuated over the years. It has ranged from a low of 0.56 in December 2020 to a high of 1.02 in December 2020 and March 2021. A higher cash ratio indicates a stronger ability to cover short-term liabilities solely with cash on hand.
In summary, while the current ratio generally indicates that Bristow Group Inc has maintained a healthy level of liquidity to meet its short-term obligations, the quick ratio and cash ratio show more variability and suggest a need for closer monitoring of the company's ability to cover immediate liabilities without relying on inventory or other current assets.
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 | 77.98 | 90.03 | 18.28 | 17.12 | -12.04 | 10.41 | -10.06 | 28.61 | 37.00 | 30.48 | 18.18 | 11.41 | 18.23 | 21.70 | 54.59 | 162.64 | 114.63 | 213.58 | 224.41 | 232.45 |
The cash conversion cycle of Bristow Group Inc shows fluctuating trends over the periods analyzed. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory back into cash. A shorter cash conversion cycle indicates a more efficient operation.
Analyzing the data, we observe that the cash conversion cycle was positive and relatively stable from March 2020 to March 2021, indicating that the company was efficiently managing its working capital during this period. However, from September 2021 to September 2022, the cycle turned negative, which could suggest that the company was able to convert its inventory into cash more quickly than paying its liabilities, a sign of potential improvements in managing cash flow.
In the most recent period, December 2022 to December 2023, the cash conversion cycle increased significantly, indicating challenges in managing working capital efficiently. A longer cash conversion cycle could imply that the company is taking longer to collect receivables, pay its suppliers, or turn its inventory into sales, which could lead to liquidity issues if not managed effectively.
Overall, it is important for Bristow Group Inc to closely monitor its cash conversion cycle to ensure optimal working capital management, efficient operations, and sustainable growth in the long term. Periods of negative or decreasing cash conversion cycle should be further analyzed to identify underlying causes and implement strategies for improvement.