Cactus Inc (WHD)
Liquidity ratios
| Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.24 | 3.17 | 2.78 | 2.76 | 2.83 | 5.61 | 4.74 | 5.23 | 5.33 | 5.60 | 5.59 | 6.44 | 7.98 | 8.69 | 8.58 | 7.09 | 5.35 | 4.55 | 4.32 | 3.92 |
| Quick ratio | 2.27 | 2.08 | 1.73 | 1.73 | 1.68 | 4.44 | 3.68 | 4.10 | 4.15 | 4.48 | 4.54 | 5.39 | 6.55 | 6.98 | 6.72 | 5.50 | 4.26 | 3.45 | 2.99 | 2.63 |
| Cash ratio | 1.02 | 0.76 | 0.36 | 0.35 | 0.40 | 2.95 | 2.43 | 2.74 | 2.91 | 3.26 | 3.43 | 4.20 | 5.30 | 5.90 | 5.71 | 4.61 | 2.83 | 2.22 | 1.87 | 1.41 |
Cactus Inc's liquidity ratios have fluctuated over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been consistently above 2.0 for the most recent quarters, indicating a strong liquidity position. However, it decreased from 5.61 in December 2022 to 2.76 in June 2023 before slightly improving to 3.24 in March 2024.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a similar trend. While it has remained above 1.5 in most periods, it dropped to 1.68 in March 2023 before recovering to 2.27 in March 2024.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has varied significantly. It decreased from 5.30 in December 2020 to 0.35 in March 2023, and then gradually improved to 1.02 in March 2024.
Overall, Cactus Inc appears to have a healthy liquidity position based on these ratios, with the company maintaining a good ability to meet its short-term obligations. However, management should closely monitor the fluctuations in these ratios to ensure the company's liquidity remains strong and stable.
Additional liquidity measure
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 395.36 | 327.55 | 481.62 | 564.92 | 815.99 | 542.44 | 663.66 | 651.39 | 633.90 | 495.27 | 502.96 | 518.17 | 596.44 | 432.28 | 579.01 | 541.78 | 458.54 | 456.32 | 532.55 | 530.99 |
The cash conversion cycle of Cactus Inc has shown fluctuations over the past several quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales.
Looking at the data provided, we observe that the cash conversion cycle has ranged from a low of 327.55 days to a high of 815.99 days over the past few quarters. This indicates that there have been significant variations in the efficiency of Cactus Inc in managing its working capital during this period.
It is notable that the cash conversion cycle peaked at 815.99 days in the first quarter of 2023, indicating that the company took a longer time to convert its investments in inventory and accounts receivable into cash during that period. Conversely, the cycle decreased to a low of 327.55 days at the end of 2023, suggesting improved efficiency in working capital management.
The overall trend seems to show some level of volatility in the cash conversion cycle, with fluctuations that may be attributed to various factors, such as changes in sales patterns, inventory management practices, and accounts receivable collection efficiency.
In conclusion, Cactus Inc should closely monitor and manage its cash conversion cycle to ensure optimal working capital management and efficiency in converting investments into cash flows. Further analysis and monitoring of the key components of the cash conversion cycle would be beneficial for the company to maintain financial stability and liquidity.